Federal agencies, states and other organizations that receive money from the federal government are scrambling to understand the details of a new Trump administration memo that appears to halt federal funding and grant programs. The impact of the short memo, released Monday, is causing widespread confusion.

The memo, obtained by NPR, says a temporary pause in funding takes effect at 5 p.m. EST on Tuesday, but a senior administration official told NPR that the pause could be as short as a day if an agency determines its programs are in compliance.

The senior official said the directive should not be interpreted as a full funding freeze. The official, who was not authorized to publicly discuss the internal memo, said that agencies are supposed to review their grants, loans and programs to ensure that they align with the new administration’s priorities.

Several states are already signaling plans to challenge the policy in court. New York Attorney General Letitia James said her office would be taking “imminent legal action” in a post on X, formerly known as Twitter.

My office will be taking imminent legal action against this administration’s unconstitutional pause on federal funding.

We won’t sit idly by while this administration harms our families. https://t.co/zAbu7TFnte

— NY AG James (@NewYorkStateAG) January 28, 2025

The memo follows dozens of executive orders signed by President Trump over the past week. Those documents included calls for reviews of various programs and funding. Trump has explicitly said all DEI programs should be halted, for example, and is generally pushing for more government efficiency and less spending by the federal government.

The new administration is also seeking to make broad changes to the federal workforce.

Critics call the demand for a funding freeze unlawful because Congress has already approved the money to be spent, but the administration is arguing that this action is not full impoundment — and instead a temporary review.

Republican lawmakers face questions about separation of powers and impact of orders

House Republicans are currently gathered for an annual party retreat — a meeting that is being held at Trump’s Doral resort in Miami. Trump spoke to lawmakers on Monday and Vice President J.D. Vance is expected to address the group on Tuesday.

Nebraska Republican Rep. Don Bacon was among those who disagreed with the order.

“I hope it’s short lived because there are real people that depend on these grants,” he told reporters outside the conference.

Bacon said he’s already heard concerns from people in his district, and repeated that he hoped it was temporary, saying “there’s no reason for the disruption.”

Pressed on the legality of the order, Bacon said he is not a lawyer but noted that Congress approved the grants. “I don’t how they can just stop it,” he said.

He pointed to the example of a woman who runs a before-school and after-school program that is funded in part by a federal grant and said, “obviously it affects her ability to do that job.”

“Long term it means people will have to shut down their programs, and so this stuff has already been appropriated, so I believe it will be short term and it should be,” Bacon said.

Republican leaders have not addressed the federal order freezing federal grants during Tuesday’s program, according to multiple GOP attendees.

Rep. French Hill, R-Ark., said he hadn’t read the order.

“I think the president under his executive order has the right to look at spending by category, appropriated by Congress, makes sure he understands how it’s being implemented under Article Two.”

Asked about whether the move amounted to impounding money already approved by Congress, Hill said, “I don’t think the courts have supported that over the years. Let’s wait and see. Let’s let him do his review and see what the result is.”

Rep. Ryan Zinke, R-Mont., backed President Trump’s move to freeze grants, saying, “I think it’s a fair proposition that the taxpayers know where the money goes.”

Zinke, who served as Interior Secretary in Trump’s first term, said he reviewed grants then and as a member of the Foreign Affairs panel. He said it’s “shocking” that there is no database on foreign aid, and that grantees should agree to an audit and demonstrate there is no conflict of interest.

Asked about Trump taking away Congress’ power of the purse, Bacon said that the president “likes a little bit of disruption and we’re getting it.”

Democrats warn of a constitutional crisis

Top Senate Democrats are warning about massive impacts of a freeze — both for groups and individuals who rely on federal funding and for the relationship between Congress and the president.

“In an instant, Donald Trump has shut off billions, perhaps trillions, of dollars, that directly support states, cities, towns, schools, hospitals, small businesses and most of all American families,” said Senate Minority Leader Chuck Schumer of New York on Tuesday.

Schumer and other leaders emphasized that the move would affect American families in red and blue states who rely on federal funding.

Schumer specifically pointed to funding for disaster relief efforts, local law enforcement, rural hospitals, food assistance, aid to the elderly, infrastructure programs, cancer research and opioid addiction treatment, among other things.

“They need tax cuts for the ultra-wealthy, and these cuts they think will fund them,” he said.

Senate Democrats said their offices have been deluged with calls since last night from people in a panic about what a lack of funding — even a temporary pause — would mean for their programs.

Sen. Patty Murray, D-Wash., vice chair of the Senate appropriations committee, called the administration’s action “unprecedented.”

“Last night, in a brazen and illegal move, the Trump administration is working to freeze huge amounts of federal funding passed into law by Republicans and Democrats alike,” she said at a press conference on Tuesday. “Trump’s actions would wreak havoc in red and blue communities everywhere. This is funding that communities are expecting, and this memo is creating chaos and confusion about whether these resources will be available to them.”

Murray said she is calling on the Senate Budget Chair, Republican Lindsey Graham of South Carolina, to postpone a committee vote on Russ Vought, Trump’s nominee to head the Office of Management and Budget. That vote is currently scheduled for Thursday.

“Republicans should not advance that nomination out of committee until the Trump administration follows the law,” she said.