The following is a statement by Joan Alker, Executive Director of the Georgetown University McCourt School of Public Policy Center for Children and Families, in response to the OMB Memo
| January 28, 2025 FOR IMMEDIATE RELEASE: |
| Statement by Joan Alker, Executive Director of the Georgetown University Center for Children and Families “Last night, a memo (M-25-13) from the Office of Management and Budget became public announcing at least a two-week pause for a large percentage of federal spending ‘such as grants and loans.’ All agencies are required to identify all ‘federal financial assistance programs and supporting activities’ and review them during the pause for alleged non-adherence to the President’s extreme ideological agenda. The memo includes a footnote stating clearly that the memo does not impact Medicare or Social Security benefits. This follows a pattern set by President Trump during the campaign where he made promises to protect Medicare and Social Security but conspicuously did not mention Medicaid. The definition of federal financial assistance commonly includes federal funding for Medicaid and the Children’s Health Insurance Program as these are grants to states – and not assistance received directly by beneficiaries, which appears to be exempt. Administrative lawyers and the Judiciary will parse the definition, but in the meantime, I call upon the Trump Administration to issue an official statement immediately clarifying that Medicaid and CHIP funding would not be affected by this memo. Any pause in federal funding of Medicaid – the largest source of federal funding received by states – would be disastrous for states as they need to draw down federal funds to meet their financial obligations to the health care providers and health plans serving Medicaid and CHIP beneficiaries. This will cause chaos and disrupt access to needed care for the 80 million children, families, adults, people with disabilities and seniors who rely on Medicaid and CHIP for their coverage – and in some cases literally to keep them alive – the mere suggestion of such a pause will cause panic. That such a memo could have been drafted without clarifying this question is negligent and suggests a callous indifference to the tens of millions of Americans who are covered by Medicaid. The uncertainty created by this memo for states, providers, and beneficiaries is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.” |
