LOUISVILLE, Ky. (WDRB) -- U.S. Rep. Morgan McGarvey, D-KY, called President Donald Trump's pause on federal grants and loans unconstitutional.
"If Donald Trump wanted to spend money, he should have run for Congress," McGarvey said Tuesday.
McGarvey represents Kentucky's 3rd congressional district, which mostly includes the city of Louisville. He said the pause could be detrimental to the people who live there.
"Congress is the government entity that spends money," he said. "The Constitution grants us the power of the purse. This is money that has already been put in the bank accounts by Congress. It has already been spent.
"And, therefore, these organizations, these hospitals, police departments, schools, they are counting on this money as part of their budget to help people, and the fact that Donald Trump is putting a pause on that can have a really detrimental impact on the services they provide and for the people they help."
Pictured: this frame grab taken from a video conference call shows Kentucky Congressman Morgan McGarvey discussing the effect of the White House's pause of federal grants and loans. (WDRB image)
On Tuesday, the White House announced the federal grants and loans as President Donald Trump's administration begins an across-the-board ideological review of its spending, causing confusion and panic among organizations that rely on Washington for their financial lifeline.
Administration officials said the decision was necessary to ensure that all funding complies with Trump's executive orders, which are intended to undo progressive steps on transgender rights, environmental justice and diversity, equity and inclusion, or DEI, efforts.
They also said that federal assistance to individuals would not be affected, including Social Security, Medicare, food stamps, student loans and scholarships.
However, the funding freeze could affect trillions of dollars, at least temporarily, and cause widespread disruption in health care research, education programs and other initiatives. Even grants that have been awarded but not spent are supposed to be halted. State agencies and early education centers appeared to be struggling to access money from Medicaid and Head Start, stirring anxiety with answers hard to come by in Washington.
Louisville Mayor Craig Greenberg said Tuesday his team is working to understand what the pause means for people in Louisville.
"For example, 90% of Louisville Metro Housing Authority is funded by the federal government," Greenberg said during a news conference Tuesday. "They serve 30,000 residents in our community. They have 90 days of cash available. That's the standard that they have for their operations."
Greenberg said that's just one of several examples beyond traditional grants from the federal government, adding that maintaining flow of those dollars is critically important
McGarvey said the vague scope of the pause is concerning. Without a deadline for the money to resume, he said it creates unnecessary uncertainty.
McGarvey said his office is looking into how it can fight back and provide guidance to organizations who might be impacted.
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Copyright 2025 WDRB Media. The Associated Press contributed to this report. All Rights Reserved.
