Attorney General Raúl Torrez said Tuesday he will join the more than 20 states in filing a lawsuit aimed at blocking an order from the Trump administration to pause all federal grant programs.
Superintendent Hilario “Larry” Chavez, right, talks with members of the Santa Fe Public Schools’ Community Review Committee at Capshaw Middle School in November 2023. “New Mexico and school districts around the state rely heavily on federal grants to support rural and tribal communities, sustain social programs, and provide support to those students who need it the most,” Chavez said of Trump’s order.
U.S. Sen. Ben Ray Luján speaks at a news conference at the U.S. Capitol in 2024. Luján called Trump’s orders “unlawful,” noting the White House memo directs federal agencies to withhold funding Congress — given control over budgeting by the U.S. Constitution — already has appropriated.
“In an overnight maneuver that would make a dictator envious, President Trump unlawfully and unilaterally froze all federal grant funding. ... He threw every town, county, Tribe, nonprofit, health care provider, school, and preschool into total disarray,” U.S. Senator Martin Heinrich said.
Attorney General Raúl Torrez said Tuesday he will join the more than 20 states in filing a lawsuit aimed at blocking an order from the Trump administration to pause all federal grant programs.
Superintendent Hilario “Larry” Chavez, right, talks with members of the Santa Fe Public Schools’ Community Review Committee at Capshaw Middle School in November 2023. “New Mexico and school districts around the state rely heavily on federal grants to support rural and tribal communities, sustain social programs, and provide support to those students who need it the most,” Chavez said of Trump’s order.
U.S. Sen. Ben Ray Luján speaks at a news conference at the U.S. Capitol in 2024. Luján called Trump’s orders “unlawful,” noting the White House memo directs federal agencies to withhold funding Congress — given control over budgeting by the U.S. Constitution — already has appropriated.
“In an overnight maneuver that would make a dictator envious, President Trump unlawfully and unilaterally froze all federal grant funding. ... He threw every town, county, Tribe, nonprofit, health care provider, school, and preschool into total disarray,” U.S. Senator Martin Heinrich said.
Attorney General Raúl Torrez said Tuesday he will join the more than 20 states in filing a lawsuit aimed at blocking an order from the Trump administration to pause all federal grant programs.
New Mexico Democrats on Tuesday lambasted President Donald Trump’s order for a sweeping pause on federal grants and loans, saying it created “chaos” and could potentially have dire consequences for many programs in a state that historically has received large amounts of federal aid.
A federal judge temporarily blocked the order minutes before it was set to go into effect at 5 p.m., meaning it cannot not be implemented until at least Feb. 3, when another hearing is scheduled.
But the push to freeze federal aid plunged government officials and nonprofits nationwide into a panic, racing to understand the directive issued Monday. It also prompted New Mexico Attorney General Raúl Torrez to join a coalition of 22 states that filed a lawsuit aimed at blocking the order.
A number of New Mexico-based organizations and state agencies were notified by the Office of Management and Budget, which oversees the performance of federal agencies, their funding would be frozen, U.S. Rep. Melanie Stansbury said during a Tuesday afternoon news conference convened by New Mexico’s congressional delegates.
“It sowed mass confusion not only across the United States but here in New Mexico,” Stansbury said.
In a separate news conference on the multistate lawsuit seeking to block the order, Torrez said, “I want the citizens of our state to understand that the New Mexico Department of Justice is prepared to take every available action that we can to make sure we provide resources for our communities.”
The scope of the order’s potential impact on New Mexico was not immediately clear Tuesday, the most chaotic day of Trump’s return to the Oval Office.
It was clear, however, a funding freeze could affect trillions of federal dollars and create widespread disruptions in education programs; public infrastructure projects, including roads already under construction; disaster relief; nutrition programs; health services; veterans support; tribal government operations; and other initiatives.
The announcement of the freeze comes as federal disaster relief has poured into New Mexico in recent years, in part as a result of the devastating Hermits Peak/Calf Canyon Fire in 2022 and subsequent flooding. This summer also saw devastating wildfires and floods in the Ruidoso area and flooding in Roswell.
The New Mexico Department of Justice issued a statement Tuesday announcing, “The state is unable to access federal funding for FEMA wildfire recovery from the Hermit’s Peak/Calf Canyon Fire.”
The White House said in a memo the funding freeze was necessary to bring a large number of federal aid programs in line with the president’s priorities.
“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,” Matthew Vaeth, acting director of the Office of Management and Budget, wrote in the memo.
Grants that already have been awarded but have not been spent could be halted under the order.
Trump administration officials said federal assistance to individuals would not be affected, meaning Social Security, Medicare, food stamps, student loans and scholarships remain secure. However, there were reports the order led to a shutdown Tuesday of Medicaid payments to health care providers.
New Mexico’s congressional delegates said the order could have wide-ranging implications for New Mexicans, with U.S. Sen. Martin Heinrich noting impacts would essentially touch the lives of every resident.
He criticized the order Tuesday evening on the Senate floor.
“In an overnight maneuver that would make a dictator envious, President Trump unlawfully and unilaterally froze all federal grant funding. ... He threw every town, county, Tribe, nonprofit, health care provider, school, and preschool into total disarray,” U.S. Senator Martin Heinrich said.
“In an overnight maneuver that would make a dictator envious, President Trump unlawfully and unilaterally froze all federal grant funding. He shut down the housing portal that non-profits and Tribes use to access mortgage financing,” Heinrich said, adding, “He literally shut down the Medicaid reimbursement portal. He threw every town, county, Tribe, nonprofit, health care provider, school, and preschool into total disarray.
“From our state’s Roundhouse to the classroom to the emergency room, today was chaos. And people want answers.”
‘Congress holds the purse’
Michael Coleman, a spokesperson for Gov. Michelle Lujan Grisham, said the governor was speaking with the New Mexico Department of Justice, state lawmakers, congressional delegates and officials in other states about the order.
“Our initial assessment indicates serious constitutional concerns that require immediate attention,” Coleman wrote in an email.
“The governor understands that these developments may cause uncertainty and anxiety. She wants New Mexicans to know that she is committed to advocating for them and protecting their interests,” he wrote.
The Governor’s Office will provide a more detailed response and outline its next steps in the “very near future,” the email states.
Torrez said in his news conference in Santa Fe the consequences of the disruptions would be felt most acutely by marginalized groups, small businesses and rural areas already grappling with economic and social challenges.
His office received reports of “Medicaid disruptions and even the inability to access the funding portal for Head Start,” he said, adding, “this impacts and disrupts the operations of law enforcement, community groups and advocates.”
Torrez noted Trump’s campaign promise to “Make America Great Again.”
U.S. Sen. Ben Ray Luján speaks at a news conference at the U.S. Capitol in 2024. Luján called Trump’s orders “unlawful,” noting the White House memo directs federal agencies to withhold funding Congress — given control over budgeting by the U.S. Constitution — already has appropriated.
Courtesy photo
“I don’t think disrupting services to law enforcement, cutting access to health care, disrupting tribal housing supports are what people had in mind when he made that promise during the last campaign,” the attorney general said.
U.S. Sen. Ben Ray Luján called Trump’s orders “unlawful,” noting the White House memo directs federal agencies to withhold funding Congress — given control over budgeting by the U.S. Constitution — already has appropriated.
“Congress holds the purse,” Stansbury said. “It is not the prerogative of the president to withhold funds that Congress has appropriated and which literally millions of Americans depend on for basic programs and services.”
‘A huge blow’ to local services
Local officials were trying to assess the potential effects they might face.
Santa Fe Public Schools Superintendent Hilario “Larry” Chavez said in a statement the district received between $20 million and $25 million in federal aid in 2024.
Superintendent Hilario “Larry” Chavez, right, talks with members of the Santa Fe Public Schools’ Community Review Committee at Capshaw Middle School in November 2023. “New Mexico and school districts around the state rely heavily on federal grants to support rural and tribal communities, sustain social programs, and provide support to those students who need it the most,” Chavez said of Trump’s order.
“The order to pause federal grants and loans could have significant implications for New Mexico, particularly in areas where federal funding plays a crucial role, especially in education,” Chavez wrote. “New Mexico and school districts around the state rely heavily on federal grants to support rural and tribal communities, sustain social programs, and provide support to those students who need it the most.”
He said the suspension could particularly affect districts that rely on Title I funds to support programs for disadvantaged students.
Santa Fe Community College received about $6.8 million in federal grants in the last fiscal year.
“We have an [Environmental Protection Agency] grant that I think is in serious jeopardy. We have a lot of workforce grants that are either tied to energy efficiency initiatives, which is going to get characterized as a green initiative, things like that,” college President Becky Rowley said.
Still, she said the college will continue providing services to its students and noted the freeze would not affect student loans.
“Everything that is providing direct aid to students is safe,” Rowley said.
The city of Santa Fe’s federal expenditures for fiscal year 2024 were $14.5 million, spokesperson Regina Ruiz wrote in an email, and are estimated at $15.5 million for the current fiscal year.
Santa Fe Mayor Alan Webber said the city’s finance team took a look Tuesday at federal funding and what it might mean if such aid was cut.
“If you take, for example, $6 million [in federal funding] away from our transit operation, we are really unable to maintain a transit system as our community members want and need,” Webber said.
“The same goes for affordable housing,” he added. “To have $1.5 million taken out of the affordable housing expenditures is a huge blow in dealing with something that, again, is a national crisis.”
Santa Fe County Manager Greg Shaffer wrote in an email the county has not yet been able to determine how the freeze might affect county government.
“The pause was only announced yesterday, so we have not had an opportunity to fully evaluate its potential impact,” Shaffer wrote.