The Department of Veterans Affairs moved with breakneck speed Tuesday to review its programs that oversee grants, loans and financial assistance to outside organizations, declaring that 44 programs targeted by a federal funding freeze would continue.
The VA said its listed programs had received the OK to continue following a White House Office of Management and Budget directive late Monday that ordered a pause on thousands of federal aid programs while they underwent review to ensure they complied with executive orders signed by President Donald Trump.
“[The freeze] will have no impact on VA health care, benefits or beneficiaries,” Acting VA Secretary Todd Hunter said in a news release Tuesday night.
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The surprise White House announcement drew outcries from aid recipients Tuesday and prompted a lawsuit by representatives for nonprofits and other organizations. It also sparked confusion across federal agencies and groups that provide services and programs for Americans, including military personnel, families and veterans.
The VA’s announcement late Tuesday followed a federal judge’s order temporarily blocking the freeze. U.S. District Court Judge Loren AliKhan suspended the effort minutes before it was set to go into effect at 5 p.m. Tuesday in response to the lawsuit.
Any delays are likely to face legal challenges because the administration would be preventing spending already approved by Congress and signed into law.
The judge’s order suspending the freeze remains in place until Feb. 3, when a hearing is scheduled for the lawsuit.
The VA announcement implied, however, that the department had reviewed its targeted programs as required and they meet the president’s criteria.
According to the VA, it conducted a “comprehensive analysis” of 44 programs and consulted with the OMB, which oversees the performance of federal agencies and the federal budget, to determine that all “will continue uninterrupted.”
The OMB memo ordered federal agencies to review their programs with several questions in mind, including whether they met Trump’s orders banning diversity programs, requiring migrant deportation, restricting foreign aid, limiting transgender rights and abortions paid for with federal tax dollars, and more.
The vaguely worded announcement, which did not include a list of targeted programs, led to chaos across federal agencies and alarmed Americans, including military personnel, families and veterans, who feared losing access to government benefits.
A footnote in the initial announcement said that the order did not affect assistance provided directly to individuals, and it specifically said Medicare and Social Security benefits were unaffected.
White House Press Secretary Karoline Leavitt reiterated these protections during her first press conference Tuesday, citing Social Security, Medicare, food stamps, welfare benefits and “assistance that is going directly to individuals” as protected.
“I want to make that very clear to any Americans who are watching at home,” Leavitt said.
But without a specific list, many military families and veterans feared the loss of benefits such as the Supplemental Nutrition Assistance Program and Women, Infants and Children program vouchers, GI Bill payments, and even VA home loans.
Even though private banks and lenders fund most mortgages backed by the VA, there was uncertainty over the covered fees, insurance and guarantees of these loans.
Eileen Huck, deputy director for government relations at the National Military Family Association, said military families were concerned and confused by the news.
“It’s important, when you’re talking about these programs that people rely on, that you have to be careful and communicate clearly what your intent is. And if you don’t, people are going to jump to conclusions and be afraid,” Huck said.
Under the review, the Defense Department must assess roughly 80 programs encompassing education of service members and dependents, environmental protection, medical research, foreign assistance and more.
The Pentagon issued a statement Tuesday evening saying it will analyze its financial assistance programs “expeditiously” and would temporarily pause any related activities as directed.
It added that defense contracts were not included in the OMB memo.
“While we are not aware of any specific contracts or other activities affected, it is possible that activities may be paused if they are determined to fall within the bounds of the guidance,” the statement read.
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