Oregon leaders were scrambling Tuesday to understand what a freeze on federal grants and loans ordered by President Donald Trump 鈥� and already subject to a court fight 鈥� might mean for the state and its residents.
Gov. Tina Kotek said the move was already taking a toll as mass confusion struck over the future of several federal portals that typically allow Oregon agencies to seek reimbursement for things like health care, education and child support.
鈥淲hen federal funds that are meant to serve the most vulnerable Oregonians are suspended or unavailable, that has impact on Oregonians,鈥� Kotek told reporters during a news conference in Salem. 鈥淚t鈥檚 a dereliction of federal government鈥檚 duty to protect Americans.鈥�
By the afternoon, Attorney General Dan Rayfield said the state would join a lawsuit alongside 22 other states and the District of Columbia seeking to invalidate Trump鈥檚 order. That suit was filed in Rhode Island.
鈥淐ongress has the authority to spend, not the president,鈥� Rayfield said, adding: 鈥淲hen you exceed your powers, it is part of our responsibility on behalf of all Oregonians to hold the Trump administration accountable.鈥�
Meanwhile, one legal challenge already appeared to have made an impact. The that a federal judge in Washington, D.C., temporarily paused Trump鈥檚 directive.
Trump鈥檚 sweeping order, revealed in a memo that leaked Monday, requires federal agencies to cease all federal assistance 鈥� including payments like grant funding that is integral and common to state budgets.
The administration said the move is an attempt to ensure federal spending aligns with a raft of executive orders Trump signed during his first week back in office, including directives aimed at illegal immigration, green energy policies, policies to accommodate trans people, and more.
鈥淭he 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,鈥� the memo said.
The promise of legal challenges was among the only certainties available Tuesday, as agency directors, lawmakers, and the governor鈥檚 office sought to better understand what pieces of the state鈥檚 funding picture could be in jeopardy.
Federal funds of Oregon鈥檚 current two-year budget 鈥� nearly a third of spending. That includes a hefty amount of funding for the Oregon Health Plan, the state鈥檚 version of Medicaid, which was a major focus on Tuesday as officials grappled with what the order would do.
U.S. Sen. Ron Wyden said in a post on X that his office has 鈥渃onfirmed reports that Medicaid portals are down in all 50 states following last night鈥檚 federal funding freeze. This is a blatant attempt to rip away health insurance from millions of Americans overnight and will get people killed.鈥�
In a document clarifying the extent of the pause, the Trump administration said Medicaid funding was not being put on pause. The , issued by the Office of Management and Budget, has no named author. It was being circulated by federal lobbyists on Tuesday.
鈥淚n addition to Social Security and Medicare, already explicitly excluded in the guidance, mandatory programs like Medicaid and SNAP will continue without pause,鈥� it reads. 鈥淔unds for small businesses, farmers, Pell grants, Head Start, rental assistance, and other similar programs will not be paused.鈥�
But Kotek told reporters that state officials were unable to seek reimbursement for both Medicaid and Head Start services as of Tuesday, alongside several other programs.
She urged Oregonians needing medical care to keep their appointments, and said the Trump administration is saying Medicaid is not affected when the reality is playing out differently. 鈥淭hey say one thing and then they can鈥檛 answer questions about what鈥檚 actually happening here in Oregon,鈥� Kotek said.
The White House said Tuesday that it expected the Medicaid reimbursement portal to be brought back online.
鈥淲e have confirmed no payments have been affected 鈥� they are still being processed and sent,鈥� White House spokeswoman Karoline Leavitt .
Kotek and Rayfield were among a chorus of Oregon Democrats blasting the move.
鈥淭he President is not a king, and the laws Congress passes are not suggestions,鈥� U.S. Sen. Jeff Merkley said in a statement. 鈥淭he Trump administration must follow the law and immediately reverse this shameful order.鈥�
U.S. Rep. Andrea Salinas called the directive an 鈥渦nprecedented steal鈥� that could have wide-ranging impacts.
鈥淐hildren and seniors will go hungry, parents will pay more for child care, small businesses won鈥檛 be able to meet payroll, veterans will lose access to housing and health care, and rural communities won鈥檛 get the relief they need to prepare for and recover from wildfires and other disaster,鈥� Salinas said in a press release.
The state鈥檚 top Republicans were slower to offer thoughts on Trump鈥檚 order, but at least one said he was heartened by the move.
Senate Minority Leader Daniel Bonham, R-The Dalles, said the spending freeze is 鈥渁ll about making sure taxpayer dollars aren鈥檛 being wasted.鈥�
鈥淧ausing to assess how taxpayer money is being spent isn鈥檛 just smart鈥攊t鈥檚 necessary,鈥� Bonham said, adding that Oregon鈥檚 budget has grown quickly while many state services are lacking. 鈥淥regon should follow the Trump Administration鈥檚 lead and take a hard look at its own budget.鈥�
Inquiries to House GOP Leader Christine Drazan and U.S. Rep. Cliff Bentz, the state鈥檚 only congressional Republican, were not immediately answered. Bentz sole public response appeared to be a repost on the social media site X that highlighted the Trump administration鈥檚 contention that Medicaid was not affected.
Among Oregon government officials on all levels, uncertainty seemed to reign.
鈥淎ll public institutions 鈥� including schools 鈥� are in a state of confusion,鈥� Salem-Keizer schools Superintendent Andrea Casta帽eda said.
Top legislative budget writers were conferring with staff to determine what proportion of federal funds might be impacted -- and how that might impact the state鈥檚 budgetary situation in both the near and long-term.
鈥淲e are still in the fact-finding stage to fully determine what the impact of these Trump Cuts will be,鈥� said state Sen. Kate Lieber, D-Portland, a co-chair of the Legislature鈥檚 budget committee. 鈥淲hat is already clear is that if these cuts go into effect the impact to Oregonians will be devastating.鈥�
the U.S. Governmental Accountability Office, the federal government spent around $1.2 trillion in grants to state, local and tribal governments in 2022. It wasn鈥檛 immediately clear Tuesday what proportion of Oregon鈥檚 federal funds could be impacted by the order.
OPB reporters Conrad Wilson, Amelia Templeton and Natalie Pate contributed to this story
