Note: The Associated Press reports a federal judge temporarily blocked the Trump administration's directive late Tuesday afternoon. That order will expire Monday afternoon.
Idaho will not use state resources to backfill any federal grants left in limbo while the Trump administration begins reviewing those awards this week.
Acting Office of Management and Budget Director Matthew Vaeth sent a memo to federal agency heads Monday, telling them to temporarily pause all grants, loans and other assistance programs while the new administration takes inventory.
“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars…” Vaeth wrote.
For every piece of federal assistance, he said each agency must assign responsibility and oversight to a senior Trump administration political appointee to ensure the spending “conforms with Administration priorities.”
It’s unclear how long the pause will last, though agency reports are due to Vaeth by Feb. 10.
Because of that directive, Idaho’s budget director, Lori Wolff, sent her own memo to state agencies Tuesday telling directors not to circumvent the White House’s initiative.
“Idaho has prepared for times like these,” Wolff wrote. “We will not use State funds to provide payment advances, cost shifts to state funds, or other budget maneuvers that undermine the process of reviewing federal funding decisions.”
That includes covering wages for employees who are partially or fully funded through federal programs.
“All state agencies who receive federal grants or assistance that are affected by this Federal action will submit a letter signed by the agency director to DFM outlining an exit strategy in the event federal funds are not available.”
Wolff said in a text message the state is still waiting for clarification from the federal government on which programs will be affected here and doesn’t yet know how much money might be held up.
"Governor Little is all in on President Trump’s efforts to rein in federal spending," said Joan Varsek, Little's press secretary.
"Idaho is better positioned than any other state to handle changes at the federal level because of how well we have managed government and the budget at the state level," Varsek said.
In the current fiscal year, state lawmakers allocated about $5.2 billion in federal funds, which accounts for 37% of Idaho’s overall budget.
That money touches nearly all, if not every, state agency.
Programs range from administering health insurance coverage through Medicaid, wildfire suppression costs and education.
Vaeth wrote in his memo that his directive will not affect Medicare or Social Security benefits.
Copyright 2025 Boise State Public Radio
