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January 29, 2025, Congresswoman Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, issued a strong statement denouncing the Trump Administration’s attempt to freeze federal grants and loans. The controversial order, which would have halted crucial funding for housing, homelessness programs, and community development initiatives, was temporarily blocked by a U.S. District Judge. Waters praised the decision, warning that if the freeze were to be implemented, it would have catastrophic consequences for vulnerable populations and the broader economy.
Waters expressed gratitude to organizations such as the National Council of Nonprofits, the American Public Health Association, the Main Street Alliance, and SAGE for their role in filing the lawsuit against the order. She also applauded U.S. District Judge Loren Alikhan for intervening, arguing that the Trump Administration’s directive was a reckless and illegal maneuver inspired by the Project 2025 agenda. According to Waters, this order would have threatened trillions of dollars in federal funding, cutting off critical resources for housing assistance, mortgage lending programs, and small business support at a time when the nation faces a severe housing crisis.
The Congresswoman underscored the dire state of housing in the United States, citing that over 771,000 people are experiencing homelessness and nearly half of American families are burdened with rent costs exceeding 30% of their income. She warned that the Trump Administration’s attempt to freeze federal funds would exacerbate these problems, putting at risk programs that provide affordable housing, public housing assistance, and support for elderly and disabled individuals. Additionally, she highlighted how the freeze could disrupt the mortgage market, leaving thousands of families unable to close on home purchases and increasing financial instability across the housing sector.
Beyond housing, Waters raised concerns about the broader economic and financial consequences of the funding freeze. She pointed out that the uncertainty surrounding the Trump Administration’s order could create confusion among financial institutions, including Community Development Financial Institutions (CDFIs), credit unions, and community banks. These entities, which serve low-income and underserved communities, rely on federal support to provide financial access to small businesses and individuals. Without clarity on whether these institutions would receive continued funding, the freeze could trigger economic distress for many communities.
Waters did not mince words in characterizing the freeze as an attempt by the Trump Administration to benefit the wealthy at the expense of working-class Americans. She accused Trump of seeking to cut social and economic support programs to make way for corporate tax breaks and to enrich his billionaire allies. Furthermore, she likened Trump’s governance style to that of Elon Musk, claiming that Trump was borrowing from Musk’s playbook of deceiving workers with false promises and then denying them their rightful compensation. Waters warned that federal employees affected by the freeze might never be paid, drawing parallels to Trump’s long history of failing to compensate contractors.
In her closing remarks, Waters vowed that she and her Democratic colleagues in Congress would not stand by idly while the Trump Administration attempted to undermine federal assistance programs. She reaffirmed her commitment to holding the administration accountable, protecting congressional authority over federal spending, and prioritizing the needs of the American people. Despite the temporary pause granted by the court, Waters stressed that the fight was far from over, as Trump and his allies would likely seek ways to circumvent the ruling.
Waters’ statement reflected a broader concern about the Trump Administration’s policy priorities and its impact on everyday Americans. With the court’s intervention temporarily halting the freeze, the battle over federal funding for essential services remains a contentious issue, one that Waters and other Democratic leaders are prepared to confront.
