President Donald Trump's expansive and unprecedented freeze on federal grants and payments has wrought anxiety across Washington and within the healthcare system, even as the White House insists the directive doesn't apply to Medicare and Medicaid.
The White House Office of Management and Budget ordered federal agencies Monday to suspend "financial assistance" from programs under their purview effective 5 p.m. EST Tuesday. The document's broad scope and vague wording triggered widespread confusion, exacerbated by a separate order last week barring agencies from external communications. On Tuesday, the U.S. District Court for the District of Columbia suspended the White House action until next Monday, when it will hold a hearing to consider the policy's legality.
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"The American people elected Donald J. Trump to be president of the United States and gave him a mandate to increase the impact of every federal taxpayer dollar," acting OMB Director Matthew Vaeth wrote in the Monday memorandum. "Career and political appointees in the executive branch have a duty to align federal spending and action with the will of the American people as expressed through presidential priorities."
Even without touching Medicare and Medicaid directly, the White House policy could impact a significant swath of the healthcare system.