Trump’s funding freeze triggers worry, Democrats say it hits Medicaid program

Trump’s funding freeze triggers worry, Democrats say it hits Medicaid program
US President Donald Trump. (AFP)
Short Url
Updated 29 January 2025
Follow

Trump’s funding freeze triggers worry, Democrats say it hits Medicaid program

Trump’s funding freeze triggers worry, Democrats say it hits Medicaid program
  • Order sows confusion among US agencies
  • Foreign aid also frozen, lifesaving medicines withheld

WASHINGTON: President Donald Trump’s order to pause all federal grants and loans sowed widespread confusion on Tuesday over its impact on far-reaching programs such as Medicaid, sending nonprofits and government agencies scrambling to understand its scope and prompting immediate legal challenges. The sweeping directive was the latest step in Trump’s dramatic effort to overhaul the federal government, which has already seen the new president halt foreign aid, impose a hiring freeze and shutter diversity programs across dozens of agencies. Democrats castigated the funding freeze as an illegal assault on Congress’ authority over federal spending, while Republicans largely defended the order as a fulfillment of Trump’s campaign promise to rein in a bloated budget.
Despite assurances from the Trump administration that programs delivering critical benefits to Americans would not be affected, US Senator Ron Wyden, the top finance committee Democrat, said his office had confirmed that the portal doctors use to secure payments from Medicaid had been deactivated in all 50 states.
Medicaid, which covers about 70 million people, is jointly funded by both the states and the federal government, and each state runs its own program.
White House press secretary Karoline Leavitt could not say whether the program had been frozen, telling reporters at her first briefing since Trump took office on Jan. 20, “I’ll get back to you.”
Leavitt later posted on X that the federal government was aware of the Medicaid portal outage and that no payments had been affected. The website will be back online “shortly,” she said. The order, laid out in a memo from the Office of Management and Budget, which oversees the federal budget, will freeze federal grants and loans as of 5 p.m. Tuesday (2200 GMT) while the administration ensures they are aligned with the Republican president’s priorities, including executive orders he signed ending diversity, equity and inclusion efforts.
Federal grants and loans reach into virtually every corner of Americans’ lives, with trillions of dollars flowing into education, health care and anti-poverty programs, housing assistance, disaster relief, infrastructure and a host of other initiatives.
The memo said Tuesday’s freeze included any money intended “for foreign aid” and for “nongovernmental organizations,” among other categories.
The White House said the pause would not impact Social Security or Medicare payments to the elderly or “assistance provided directly to individuals,” such as some food aid and welfare programs for the poor.
In a second memo released on Tuesday, OMB officials said funds for Medicaid, Head Start, farmers, small businesses and rental assistance would continue without interruption. The freeze followed the Republican president’s suspension of foreign aid last week, a move that began cutting off the supply of lifesaving medicines on Tuesday to countries around the world that depend on US development assistance.

Disputed effects

Four groups representing nonprofits, public health professionals and small businesses filed a lawsuit on Tuesday challenging the directive, saying it “will have a devastating impact on hundreds of thousands of grant recipients.” Democratic state attorneys general also said they would ask a court on Tuesday to block the freeze from taking effect.
“From pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence, and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives,” Diane Yentel, president and CEO of the National Council of Nonprofits, one of the four groups that sued on Tuesday, said in a statement.
In Connecticut, the reimbursement system for Head Start — a government program that provides early education and other benefits to low-income families — was shut down, preventing preschools from paying staff, Democratic US Senator Chris Murphy said on X. The OMB memo did not appear to exempt disaster aid to areas like Los Angeles and western North Carolina that have been devastated by natural disasters. Trump pledged government support when he visited both places last week.
At the Tuesday briefing, Leavitt would not specifically say whether Head Start or disaster aid would be frozen.
Agencies were trying to understand how to implement the new order.
The Justice Department’s Office of Justice Programs, its largest grant-making arm, will pause $4 billion in funding for community-based programs, nonprofits, states and municipalities, according to a person familiar with the matter and a memo seen by Reuters. Among the affected programs include the National Center for Missing and Exploited Children, which receives more than $30 million a year from the Justice Department.
The OMB memo asserted the federal government spent nearly $10 trillion in fiscal year 2024, with more than $3 trillion devoted to financial assistance such as grants and loans. But those figures appeared to include money authorized by Congress but not actually spent — the nonpartisan Congressional Budget Office estimated government spending in 2024 at a much lower $6.75 trillion.
Trump’s Republican allies have been pushing for dramatic spending cuts, though he has promised to spare Social Security and Medicare, which make up roughly one-third of the budget. Another 11 percent of the budget goes toward government interest payments, which cannot be touched without triggering a default that would rock the world economy.

Democrats challenge ‘lawless’ move
Democrats immediately criticized the spending freeze as unlawful and dangerous.
Senate Democratic Leader Chuck Schumer said the administration did not have the authority to prevent spending approved by Congress.
“This decision is lawless, destructive, cruel,” Schumer said in a speech to the Senate. “It’s American families that are going to suffer most.”
The US Constitution gives Congress control over spending matters, but Trump said during his campaign that he believes the president has the power to withhold money for programs he dislikes. His nominee for White House budget director, Russell Vought, who has not yet been confirmed by the Senate, headed a think tank that has argued Congress cannot require a president to spend money.
US Representative Tom Emmer, the No. 3 Republican in the House of Representatives, said Trump was simply following through on his campaign promises.
“You need to understand he was elected to shake up the status quo. That is what he’s going to do. It’s not going to be business as usual,” Emmer told reporters at a Republican policy retreat in Miami.
At least one Republican centrist, US Representative Don Bacon, said he hoped the order would be short-lived after hearing from worried constituents, including a woman who runs an after-school program that depends on federal grant money.
“We’ve already appropriated this money,” he said. “We don’t live in an autocracy. It’s divided government. We’ve got separation of powers.”


World Bank to release damage assessments for Ukraine, Gaza

World Bank to release damage assessments for Ukraine, Gaza
Updated 5 sec ago
Follow

World Bank to release damage assessments for Ukraine, Gaza

World Bank to release damage assessments for Ukraine, Gaza

WASHINGTON: The World Bank will release an assessment of damages to infrastructure in Gaza in coming days, along with an updated assessment of damages in Ukraine on February 25, Anna Bjerde, the bank’s managing director of operations, said on Monday.
Bjerde said the Gaza report, prepared together with the United Nations and European Union, would provide a fuller overview of damage to the Palestinian enclave after an interim report in April showed it suffered $18.5 billion in damages to critical infrastructure in the first four months of the war.


At least 30 killed after Bolivia bus plunges into ravine

At least 30 killed after Bolivia bus plunges into ravine
Updated 21 min 3 sec ago
Follow

At least 30 killed after Bolivia bus plunges into ravine

At least 30 killed after Bolivia bus plunges into ravine

LA PAZ: A passenger bus plunged into an 800-meter-deep abyss in southern Bolivia on Monday, killing at least 30 people and injuring 15, police and local media said.
The bodies of “at least 30” people have been recovered and transported to morgues after the accident near the town of Yocalla, police colonel Victor Benavides told AFP.
The accident happened on a narrow two-way road between the cities of Potosi and Oruro, with the route running along a ravine nearly half a mile deep.
Local news outlet Unitel reported at least 15 people injured in the crash — including three children — had been transferred to hospital.
Several were in a serious condition.
It was not immediately clear how many people were on board the bus.
Authorities said their initial theory was that the crash was caused by speeding, with the driver “unable” to control the bus, according to Benavides.
This is the most serious road accident reported in the South American country so far this year.
Nineteen people were killed when another bus careened off a road, also near Potosi, last month.
Bolivia’s winding mountain roads are notoriously deadly.
Road accidents kill an average of 1,400 people every year in the country of about 12 million inhabitants, according to government data.


Delta plane flips upside down in Toronto crash, 15 wounded

Delta plane flips upside down in Toronto crash, 15 wounded
Updated 18 February 2025
Follow

Delta plane flips upside down in Toronto crash, 15 wounded

Delta plane flips upside down in Toronto crash, 15 wounded

TORONTO: A Delta Air Lines jet with 80 people onboard crash landed Monday at the Toronto airport, officials said, flipping upside down and leaving at least 15 people injured but causing no fatalities.
The Endeavor Air flight 4819 with 76 passengers and four crew was landing at around 3:30 p.m. in Canada’s biggest metropolis, having flown from Minneapolis in the US state of Minnesota, the airline said.
Paramedic services told AFP 15 people were injured including three critically — a child, a man in his 60s and a woman in her 40s.
All wounded, including those with minor injuries, were taken to area hospitals either by ambulance or helicopter, the paramedic service said.
Dramatic images on local broadcasts and shared on social media showed people stumbling away from the upside down CRJ-900 plane, shielding their faces from wind gusts.
Fire crews appeared to be dousing the aircraft with water as smoke wafted from the jetliner.
“Toronto Pearson is aware of an incident upon landing involving a Delta Air Lines plane arriving from Minneapolis. Emergency teams are responding. All passengers and crew are accounted for,” the airport authority posted on X. The airport suspended all flights after the incident.
Facebook user John Nelson, who said he was a passenger on the flight, posted a video showing the crashed aircraft and wrote: “Our plane crashed. It’s upside down.”
“Most people appear to be okay. We’re all getting off,” he added.
Delta said its connection flight operated by Endeavor had been “involved in an incident,” and promised to share further details as it confirmed them.
“Initial reports were that there are no fatalities,” the airline said through a spokesperson’s statement.
A massive snow storm hit eastern Canada on Sunday. Strong winds and bone-chilling temperatures could still be felt in Toronto on Monday when airlines added flights to make up for weekend cancelations due to the storm.
“The snow has stopped coming down, but frigid temperatures and high winds are moving in,” the airport warned earlier, adding that it was “expecting a busy day in our terminals with over 130,000 travelers on board around 1,000 flights.”
Federal Transport Minister Anita Anand confirmed there were 80 people on the flight. “I’m closely following the serious incident at the Pearson Airport involving Delta Airlines flight 4819 from Minneapolis,” she posted on X.
Ontario Premier Doug Ford, meanwhile, said he was “relieved there are no casualties after the incident at Toronto Pearson,” adding that airport and local authorities were providing help.
Canada’s Transportation Safety Board said it was deploying a team of investigators to the site of the crash.
This comes after other recent air incidents in North America including a mid-air collision between a US Army helicopter and a passenger jet in Washington that killed 67 people, and a medical transport plane crash in Philadelphia that left seven dead.


‘No kings on Presidents Day’ rings out from protests against Trump and Musk

‘No kings on Presidents Day’ rings out from protests against Trump and Musk
Updated 18 February 2025
Follow

‘No kings on Presidents Day’ rings out from protests against Trump and Musk

‘No kings on Presidents Day’ rings out from protests against Trump and Musk
  • Nearly 1,000 people marched in the snow from the Statehouse in Boston to City Hall, chanting ‘Elon Musk has got to go’ and ‘No kings on Presidents Day!’
  • One sign at the rally that attracted hundreds in the nation’s capital said, ‘Deport Musk Dethrone Trump’

BOSTON: Protesters against President Donald Trump and his policies braved frigid temperatures to demonstrate Monday at rallies corresponding with the Presidents Day holiday.
Dubbed “No Kings on Presidents Day” by the 50501 Movement, the latest protests came less than two weeks after a similar nationwide event on Feb. 5 drew participants in dozens of cities. Both protests denounced Trump and billionaire adviser Elon Musk, the leader of Trump’s new Department of Government Efficiency, an outside-government organization designed to slash federal spending.
Nearly 1,000 people marched in the snow from the Statehouse in Boston to City Hall, chanting “Elon Musk has got to go” and “No kings on Presidents Day!” The temperature was below freezing with wind chills in the teens.
Boston protesters, some dressed in Revolutionary War-style clothing from the 1700s, carried signs saying such things as “This is a Coup” and “Cowards Bow to Trump, Patriots Stand Up.” One sign had a depiction of Uncle Sam saying “I Want You to Resist.”
“I thought it was important to be here on Presidents Day to demonstrate for what America stands for,” said Emily Manning, 55, a Boston engineer who came to the rally with her two teenage sons. “American values are not the values of the plutocracy or the limited few rich people.”
Organizers of Monday’s protests, which were focused on state capitals and major cities including Washington, D.C.; Orlando, Florida; and Seattle, said they were targeting “anti-democratic and illegal actions of the Trump administration and its plutocratic allies.”
One sign at the rally that attracted hundreds in the nation’s capital said, “Deport Musk Dethrone Trump.”
Many demonstrations were slated for cities where temperatures were well below freezing as a polar vortex worked its way across the country.
The rallies followed a series of Trump executive orders and came just days after layoffs across federal agencies as part of an effort to reduce the government workforce.


What do people want from a leader in a rapidly changing world?

What do people want from a leader in a rapidly changing world?
Updated 28 min 31 sec ago
Follow

What do people want from a leader in a rapidly changing world?

What do people want from a leader in a rapidly changing world?
  • Gallup poll spanning 52 countries reveals “hope” as the top need from leaders, followed closely by “trust”
  • In low-income countries, hope becomes crucial for reducing suffering and giving people a sense of a better future

LONDON: What are leaders for? It sounds like an obvious question, with equally obvious answers.

But a new survey, conducted across 52 countries and territories and accounting for 76 percent of the world’s adult population, has refined those answers down to just four words: hope, trust, compassion and stability.

And of these “four needs of followers,” one emerges head and shoulders above the rest – hope, followed closely by trust.

These were the headline findings of an international survey released by international polling company Gallup at last week’s three-day World Governments Summit in Dubai.

The summit, which has been held annually in the city since 2013, brings together heads of government, officials and thought leaders “to address universal challenges and set the agenda for next-generation governments.”

Topics tackled at this year’s summit included the impact of artificial intelligence and how governments can maintain the trust of their citizens in the face of the maelstrom of misinformation and conspiracy theorizing generated in this digital age.

The World Governments Summit in Dubai, which has been held annually since 2013, brings together heads of government, officials and thought leaders “to address universal challenges and set the agenda for next-generation governments.” (AFP)

And trust and hope, the survey found, are what people want most from their leaders, whether in government or at the head of the companies for which they work.

“Today’s leaders face profound and complex challenges, such as climate change, conflict and artificial intelligence, and must make decisions that affect the lives of their followers,” wrote Jon Clifton, Gallup’s CEO, who was present at the launch of the report during the World Governments Summit on Feb. 11.

The “Global Leadership Report: What Followers Want” put it this way: “In this changing world, it is crucial for leaders to understand the reasons people follow them.”

To better understand how people around the world perceive leaders and their impact, Gallup first asked participants to name a leader who has had the most positive influence on their daily lives. They then asked them to list three words describing what that leader contributes to their lives.

The survey found that “hope is the primary need of followers around the world” — a finding that would have come as no surprise to the 19th-century French leader Napoleon Bonaparte, who defined a leader as “a dealer in hope.”

When asked to list three words that best describe what leaders contribute to their lives, 56 percent said “Hope,” followed by 33 percent who named “Trust.”

It is, according to the Gallup report, essential for leaders to recognize that “hope is a powerful motivator. It stands out as the dominant need across followers, with 56 percent of all attributes tied to positive leaders grouping into this theme — particularly the attributes of inspiration, vision and personal integrity.

The Gallup survey found that “hope is the primary need of followers around the world.” (Getty Images)

“Hope gives followers something better to look forward to, enabling them to navigate challenges and work toward a brighter future. Without hope, people can disengage, lose confidence and become less resilient.”

The survey found that hope is the primary need across all 52 countries surveyed, ranging from just over four in 10 people in Bulgaria, Jordan and Lebanon to at least two in three in Saudi Arabia, Indonesia and Egypt.

In fact, hope as a need fulfilled by leaders was above the global average of 56 percent in Egypt (72 percent), Saudi Arabia (66 percent), the UAE (64 percent). By contrast, hope was found most wanting in Palestine (49 percent), Jordan (44 percent) and Lebanon (41 percent).

And the survey makes clear that, while government leaders obviously play a significant role in the lives of their citizens, other types of leaders understandably have a more direct, day-to-day impact on people’s lives and happiness.

Overall, asked what leader had the most positive influence on their lives, an overwhelming and perhaps unsurprising majority of those surveyed (57 percent) named a family leader.

Next, with 11 percent, came work managers, followed by political and religious leaders, both named by 7 percent of respondents.

Celebrities, the survey reveals, are rarely considered to exert the most positive influence in people’s daily lives — just 2 percent of adults name a celebrity.

Which type of leader has the most positive influence varies enormously from country to country – for example, workplace leadership is important to 70 percent of people in China and 52 percent in the UAE, while political leadership is cited by 38 percent in Tanzania (the highest rating), 33 percent in Israel and 22 percent in Turkiye.

While Gallup’s research into followers’ needs offers valuable insight, the answer to what makes a good leader lies in a holistic understanding of themselves, their role, and the needs of their followers. Without first understanding what followers expect and need, a leader’s ability to lead successfully is in question.

“Great leadership is defined not by authority alone, but by how much the people who follow leaders trust and support them,” the Gallup report said.

“The best leaders — of countries, organizations or other groups — keep their followers in mind when making decisions, because without them, even the most capable leader lacks true influence.”

IN NUMBERS

  • 60% of survey respondents say they look for hope in political leaders.
  • 54% look for it in family members.
  • 59% in religious leaders.
  • 59% in managers.

The survey also found a direct connection between wellbeing and life satisfaction and the extent to which the basic expectations of leadership — hope, trust, compassion and stability — are met.

Gallup measures life satisfaction by asking respondents to imagine a ladder with ten rungs, with the lowest rung representing the worst possible life and the highest the best.

Those who rated their current life a “7” or higher and their anticipated life in five years an “8” or higher are categorized as thriving. Those on “4” or lower are considered to be suffering.

By this metric the survey reveals a subtle but significant association between hope and life satisfaction. Among those who do not associate hope with the leader they mention, only 33 percent are classed as thriving and 9 percent as suffering, whereas thriving rises to 38 percent and suffering dips to 6 percent among those for whom the need for hope is met.

Although suffering is relatively rare, the survey results show it decreases as more needs are met. This is especially important in low-income countries, where higher levels of suffering make hope for a better future crucial in reducing pain.

While Gallup’s research into followers’ needs offers valuable insight, the answer to what makes a good leader lies in a holistic understanding of themselves, their role, and the needs of their followers. (Pexels)

Trust is the second most important need identified by the survey (33 percent), and this has “an additive role” when combined with hope and either stability or compassion, in which case rates of thriving increase to 43 percent and 39 percent respectively.

Followers need to trust that their leaders will keep their word and act with integrity, the “Global Leadership Report” says, adding: “Trust is the foundation of human relationships,” enabling people to collaborate toward shared goals more effectively.

The report adds that its research into the needs of followers “offers a blueprint for current and future leaders.”

“As we navigate an era marked by rapid technological advancements and global interconnectedness, the ability to pivot and respond to new challenges is more important than ever,” the report said.

“Leaders who keep the four needs of followers at the forefront when making decisions will likely be most destined to make a positive impact on the world.”

Jon Clifton, CEO of Gallup. (Supplied)

The Gallup report further states that leaders “must ultimately know three things to succeed” — they must understand the needs of their followers and fulfil the four needs of hope, trust, compassion and stability; they must know themselves, and lead with their strengths; and “the most successful leaders also have a deep understanding of the demands of their specific role and the expectations attached to it.”

However, Gallup leaders cannot meet their followers’ needs without first knowing themselves, the report says, adding that effective leaders develop their innate strengths, refining natural talents through knowledge and skill to unlock unique leadership approaches and maximize their impact.

The best leaders, the report concludes, “achieve success — despite varied roles, organizations and industries — by bringing multiple teams together and making great decisions, driving the purpose and performance of their organization.

“The more leaders can provide their followers with hope, trust, compassion and stability by leaning on their unique strengths and applying them to the specifics of their role, the more successful they will be.”