In an unprecedented and widely unpopular move, the Trump administration issued a memo on the evening of January 27, halting funding to popular benefit and grant programs that Americans across the country depend on, including life-saving health research, clean energy projects, education, and food assistance. Though that memo has since been pulled back under huge nationwide pressure, the administration remains bent on taking essential programs Congress voted for away from the people who need it.

The Trump administration’s sweeping yet vague announcement has spread panic and chaos. It’s also showing where Trump’s loyalties lie: his billionaire friends over everyday people. This harmful decision, pulled from the Project 2025 playbook, would rob Americans of trillions of federal funding dollars. Funds that help people keep the lights on, keep our drinking water clean, aid communities recovering from gut-wrenching floods and wildfires, state and Tribal governments need to deliver vital services to our communities, and much, much more. It’s put roughly 2,600 federal programs at risk, and with it, the well-being of millions of Americans. 

Despite his lies, Trump’s actions show a blatant disregard for working-class Americans. This move to eliminate access to essential services is just the latest in a series of attacks on the public he was elected to serve. 

All Americans deserve a thriving and healthy clean energy future based on good jobs, family-sustaining wages, and affordable power bills. This cruel move by the Trump administration threatens not only that, but the very fabric of our society. We need our government to function to provide the basic services we all rely on. And the chaos they are sowing threatens to unravel that.

So much is still unknown. Amid the uncertainty, facing two lawsuits, and less than 48 hours later, on January 29, the Trump administration’s OMB withdrew the memo in a blatant attempt to upend the lawsuits. However, the White House press secretary later commented that the efforts to block spending were still in effect. A federal judge has agreed with states that while the memo no longer exists, the impacts of the order remain. One court order blocking the administration from acting remains in place, and a second court will soon rule on a request from the states to stop the administration’s attacks on their budgets.

At a time when spreading chaos is an intentional diversion tactic, here’s Evergreen’s policy analysis on what this memo means for clean energy, climate, and communities. 

Can Trump Even Do This? What Does the Constitution Say? 

In what is referred to as the “Appropriations Clause,” the U.S. Constitution gives the spending “power of the purse” to Congress, not the president. It states: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” This clause underscores a crucial part of the system of checks and balances that governs our country and prevents the executive branch from spending money without congressional oversight and approval.

Additionally, Trump’s actions may violate the U.S. Impoundment Control Act of 1974. While this Act allows some limited presidential control over funds, it explicitly prohibits a president from withholding funds, also known as “impoundment,” because he disagrees with the policy objectives related to the spending. The OMB’s memo directing funding cuts is doing precisely that.

Given all of this, it’s no surprise the courts are taking action. In one case, the states argue Trump’s executive actions are plainly illegal, where the judge is likely to issue a restraining order. In another, nonprofit groups who use federal funds have already secured a near-term stay of the administration’s actions. The legal and political landscape continues to  change hour-by-hour.  

What Programs Are Impacted?

Trump’s funding cuts could impact roughly 2,600 programs. While the administration's chaos makes it difficult to predict which programs will be targeted, this overview examines the potential consequences of defunding a few key climate and energy programs Congress voted for. 

1. Energy Bills

Trump’s OMB memo says financial assistance should be dedicated to “eliminating the financial burden of inflation” and “unleashing American energy and manufacturing.” So it’s absolutely ironic and hypocritical that Trump’s funding cuts would likely cut a number of clean energy grants passed under the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), which do just that. It’s worth repeating that time and time again, researchers have found that renewable energy is cheaper than fossil fuels, and IRA investments made it cheaper to produce clean energy. 

To make matters worse, in the depths of winter, this funding cut endangers essential programs like the Low-Income Home Energy Assistance Program (LIHEAP) which helps millions of families afford their utility bills. 

2. Housing

Trump’s funding cuts could shut down dozens of programs that reduce the cost of housing for everyday Americans, including loan guarantees that keep mortgage rates lower. The last thing we need during our current housing affordability crisis is anything that makes it harder for people to pay the rent or get a mortgage and dismantles programs that expand the supply of affordable housing.

Trump could also gut the Home Energy Rebate programs and the Weatherization Assistance Program, which help families save money by upgrading their homes to be healthier and more efficient, permanently lowering their utility bills.  

All Americans should be able to have healthy, efficient, and affordable homes in the places they most want to live—near jobs, services, and transit. Federal funding is critical to creating, preserving, and upgrading homes so that everyone has a place to thrive.

3. Transportation

Trump’s funding cut could slam the brakes on vital clean transportation programs like the National Electric Vehicle Infrastructure Program (NEVI). NEVI provides states with funding to deploy a nationwide network of electric vehicle (EV) chargers to help make EVs a practical and money-saving option for all Americans—while addressing air pollution, carbon emissions, and EV range anxiety for drivers. (Read more about how the equitable and effective implementation of the NEVI program can tackle pollution in communities of color.)

4. Climate and Environmental Justice

Nonprofit organizations, including those serving climate and environmental justice communities, have already been blocked from the federal system that allows them to access grant money. Among the many programs affected, Trump’s move could impede the Community Change Grants, which provided $2 billion to environmental and climate justice projects that would benefit disadvantaged communities. 

5. Tribal Governance

Trump’s funding cuts disproportionately impact Tribal Nations and Native people, who receive a wide range of federal grants and loans. Looking specifically at the intersection of Tribal governance and the environment, programs under threat could include climate resilience programs, electrification programs, wildlife grants, energy programs that deliver more reliable, cleaner energy, programs that support Tribal governments to regulate environmental quality, and more. 

6. Jobs and Manufacturing

Trump’s OMB memo could cut off funding for countless infrastructure and manufacturing projects in communities across the country, jeopardizing tens of thousands of middle-class, union jobs. The workers repairing roads, installing broadband, and leading other critical work to repair U.S. infrastructure will face furloughs and layoffs thanks to Trump. Apprentices learning their trade in federally supported programs will likely see their education interrupted, perhaps permanently, as will many students in federally supported financial aid programs. These cuts are a direct attack on current and future workers, students, and our economy.

President Trump is cutting off opportunities just as America is hitting its manufacturing renaissance. Federal funding under the IRA spurred $110 billion of private investment and created 90,000 manufacturing jobs in clean energy industries. Blocking federal funding, like the nearly $400 million Pennsylvania clean manufacturing grant, will undermine our growing clean economy and could deprive the Commonwealth of 6,000 new jobs. The Trump administration is going out of its way to kill jobs and stifle economic growth in service of its dangerous culture war agenda.

7. Disaster Relief

Extreme weather disasters like the flooding in North Carolina and the fires in California show us why good governance is so crucial and how federal grants and loans can help Americans recover when catastrophes strike. The Federal Emergency Management Agency (FEMA), instrumental to natural disaster response, is one of the programs on the president’s chopping block. 

What You Can Do 

These are just some of the harms this single move by the administration could wreak. The administration has already wavered in the face of overwhelming public outcry, but they’re not going to stop and neither can we. While courts work on determining the illegality of these actions, we must continue to fight back by demanding action from our elected leaders. Send a message right now urging your members of Congress to do everything in their power to fight back.