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'Sheer panic': Washington officials rush to figure out federal funding freeze

caption: Sen. Patty Murray, D-Wash., speaks about the first weeks of the Trump administration, Tuesday, Jan. 28, 2025, on Capitol Hill in Washington.
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Sen. Patty Murray, D-Wash., speaks about the first weeks of the Trump administration, Tuesday, Jan. 28, 2025, on Capitol Hill in Washington.
AP Photo/Jacquelyn Martin

UPDATE, Tuesday at 2:56 p.m.: A federal judge paused the implementation of a Trump administration order that would have frozen the issuance of federal grants and loans until Feb. 3.

RELATED: Federal judge temporarily blocks Trump administration freeze on federal grants and loans

U.S. District Court Judge Loren AliKhan issued the administrative stay at nearly the last minute before the order was set to take effect Tuesday afternoon; the U.S. Department of Justice objected to it.

The Washington State Attorney General's Office also announced Tuesday afternoon that the state would be joining 21 others in suing the federal government over the order.

ORIGINAL STORY: Washington state lawmakers and leaders are rushing to respond to a Monday night memo from the White House budget office calling for a federal funding freeze of potentially $3 trillion.

The memo had created "sheer panic," said Washington Democratic Sen. Patty Murray at a press conference in D.C. on Tuesday morning. Murray also called President Trump's move "brazen and illegal."

RELATED: Trump memo to halt federal funds triggers confusion and constitutional questions

Such a freeze would have devastating consequences across the country, Murray said at another press conference that afternoon. She and other Democrats said the order could cut funding for school districts, police, homeless veterans, food programs for seniors, and tribal healthcare and housing.

Murray added that Democrats and Republicans in Congress have already appropriated the money that could get blocked by the funding freeze.

"I'm warning the Trump administration – the law is the law. You need to reverse course," Murray said.

The White House and Office of Management and Budget did not immediately respond to requests for comment. But White House Press Secretary Karoline Leavitt said in a briefing the freeze is not a "blanket pause" on federal assistance and all agencies could “make a case to the administration to keep their funding.”

The memo calls for a review and comprehensive analysis of federal funding. It's set to take effect Tuesday afternoon.

"The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve," the memo says, calling for a review and comprehensive analysis. "In the interim, to the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance."

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Washington state Treasurer Mike Pellicciotti told KUOW he believes the move is illegal.

"This action by the Trump administration is insane," Pellicciotti said. "It is not stable. It is not anything that would lead to functional government. It is bad for the economy. It is bad for the operations of government. But we're going to be taking every step we can in the state of Washington to make sure that we continue to operate and serve the interests of the people."

A spokesperson from the Washington Attorney General’s Office said they are looking into potential litigation.

The legality of the order is already being challenged by a number of nonprofits nationally.

At LifeWire, an Eastside nonprofit that shelters and houses survivors of domestic violence, alarm bells started sounding Monday night, but staff still aren't sure what the effect of the memo will be.

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"I don't think anybody really knows what's gonna happen," said Patrick Martin, LifeWire's director of community relations. "We've been around since the early 1980s, and for pretty much that entire time, the federal government has been one of our closest, our largest partners. It's kind of a new age when you see a two-page executive order that flips a switch like that."

Martin said LifeWire supports hundreds of domestic violence survivors with rental assistance with money from federal departments such as Housing and Urban Development, the Justice Department, and FEMA, and are reaching out to major donors to make sure there's no disruption to services.

Rep. Suzan DelBene (D-Medina) called the memo a "one-man government shutdown" in a press release.

"Congress authorized these resources with support from Democrats and Republicans, and no president can blatantly ignore the law in this way," DelBene said. "President Trump must immediately follow Congress' instructions and unfreeze these funds."

RELATED: Seattle judge temporarily blocks Trump executive order on birthright citizenship

State-level Republicans in Olympia told reporters they don't know the details, but this is another sign that the state needs to manage its money more carefully. The state is facing a budget gap of $10-12 billion over the next few years.

Democrats said they hope Congress takes action to ensure states get the resources they need, particularly for Medicaid and social safety nets.

"If federal funding goes away, we do not have the ability to backfill those dollars," said state Sen. June Robinson (D-Everett).

University of Washington, one of the biggest recipients of federal funding in the state, is still "working closely with our state and federal partners to analyze the potential impacts of the freezes that were announced late yesterday on our students, research and patients," a university spokesperson wrote in an email.

Jeanie Lindsay and John Ryan contributed reporting.

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