Bernie Sanders Condemns Trump’s Federal Loan and Grant Freeze: ‘He Is Not a King’

Senator Bernie Sanders has denounced former President Donald Trump’s executive order freezing all federal loans and grants, calling it a dangerous step toward authoritarianism. The directive, issued in a memo from the acting head of the Office of Management and Budget, requires all federal agencies to halt disbursement of financial assistance starting at 5 p.m. ET on Tuesday.

The move has drawn widespread criticism, particularly from Democrats, who argue it will have devastating consequences for vulnerable Americans.

The memo does not specify which programs will be impacted but states that Social Security and Medicare are exempt. However, Senate Democratic Leader Chuck Schumer warned that the funding freeze could affect universities, nonprofit organizations, food assistance programs, hospitals, community health centers, and organizations that serve disabled veterans.

These institutions rely on federal support for essential services, and a sudden pause in funding could disrupt operations and harm millions of people.

Sanders, along with other Senate Democrats, has strongly condemned the order, warning that it will have dire consequences for children, seniors, and vulnerable communities across the country.

“This is an unconstitutional power grab,” Sanders said in a statement. “Our Founding Fathers gave Congress, not the president, control over government spending. Under our system of checks and balances, no president has the right to pick and choose which laws to follow.”

Sanders criticized the timing of the freeze, arguing that it raises more questions than answers. He expressed concerns over whether essential services, such as community health centers, will continue receiving federal grants needed to provide primary healthcare to millions of Americans.

Hospitals and food assistance programs are already under strain, and the sudden withdrawal of funding could lead to immediate and severe disruptions.

“This unconstitutional memo must be rescinded immediately,” Sanders stated. “The American people—Democrats, Republicans, and Independents—must come together to defeat this dangerous move toward authoritarian rule.”

He emphasized that if Trump wanted to change funding policies, he should have worked through Congress rather than unilaterally issuing an executive order that overrides legislative authority.

The freeze on federal financial assistance has sparked strong opposition from state attorneys general. Connecticut Attorney General William Tong announced on Tuesday that attorneys general across the country are preparing imminent legal action to challenge the order.

New York Attorney General Letitia James confirmed that her office is ready to take immediate steps to block the administration’s move, calling it an unconstitutional attack on federal funding.

Democratic lawmakers argue that the funding freeze could disproportionately harm low-income and marginalized communities. Many nonprofit organizations that serve these groups depend on federal grants to provide essential services, including housing assistance, education programs, and healthcare access.

Without these funds, thousands of organizations could face closures, leaving millions without the support they rely on.

The impact on universities is another major concern. Federal funding plays a crucial role in higher education, supporting research initiatives, student aid, and operational costs.

Institutions that rely on these funds may face delays in financial aid distribution, potentially disrupting the education of thousands of students. Many universities, especially public institutions, have already struggled with budget shortfalls in recent years, and a sudden freeze in federal assistance could exacerbate these challenges.

Healthcare advocates have also raised alarms about the order’s implications for hospitals and community health centers. These facilities depend on federal grants to maintain operations, particularly in rural and underserved areas.

A funding pause could lead to staff reductions, service limitations, and even facility closures, making healthcare less accessible for those who need it most.

Sanders stressed that this action undermines democratic principles by bypassing congressional authority over government spending. He warned that allowing a president to unilaterally decide how federal funds are distributed sets a dangerous precedent. “If President Trump wants to change our nation’s laws, he has the right to ask Congress to change them,” Sanders stated. “He does not have the right to violate the United States Constitution. He is not a king.”

The freeze has also raised concerns about its potential economic impact. Many businesses and organizations depend on federal contracts and grants for job creation and economic stability.

Without these funds, critical projects could be delayed or canceled, leading to job losses and financial uncertainty for thousands of workers. Economic analysts warn that such disruptions could ripple through multiple sectors, slowing growth and deepening economic instability.

Republican lawmakers have largely remained silent on the issue, though some have expressed concerns about how the freeze might affect their states. With many Republican-led states relying on federal funding for infrastructure, disaster relief, and social programs, the order could create significant political backlash.

Some GOP senators have privately voiced worries that cutting off federal support to critical programs could hurt their constituents and weaken their chances in upcoming elections.

Despite mounting legal and political challenges, the Trump administration has defended the order, arguing that it is necessary to review and reassess federal spending.

The administration claims that pausing financial disbursements will allow officials to identify inefficiencies and eliminate wasteful spending. However, critics argue that the freeze is a politically motivated move aimed at consolidating power rather than improving government efficiency.

The legal battle over the order is expected to escalate in the coming days, with multiple lawsuits likely to be filed. Advocacy groups, universities, and state governments are preparing to challenge the administration’s authority to unilaterally suspend funding.

If courts rule against the order, it could be overturned before significant damage is done. However, if it remains in place, millions of Americans could face immediate financial hardships.

Sanders urged Congress to take action to block the order, calling on lawmakers from both parties to defend the constitutional separation of powers.

“No president, regardless of party, should have the authority to unilaterally cut off funding that Congress has already approved,” Sanders said. “This is a dangerous abuse of power that must be stopped.”

The coming days will determine whether the federal funding freeze stands or is overturned by legal challenges. With mounting public pressure and bipartisan concerns, the Trump administration’s decision faces increasing scrutiny.

Whether through congressional action or the courts, opponents of the order are preparing for a fight to protect vital funding for millions of Americans.