After Two Days of Confusion, Federal Funding Freeze Put on Ice

After Two Days of Confusion, Federal Funding Freeze Put on Ice
Hisham Ibrahim/Getty Images

By MOAA Staff

 

This article was last updated Jan. 29 at 3:50 p.m. Eastern.

 

A Jan. 27 memorandum from the Office of Management and Budget instituting a temporary pause of all federal agency grant, loan, and financial assistance programs was blocked by a federal judge Jan. 28 and then rescinded Jan. 29 before MOAA and fellow advocacy groups could fully ascertain its potential effects on the military and veteran community.

 

MOAA continuously monitors for threats to service-earned benefits as part of its work on behalf of those who serve and have served, their families, and their survivors. We will take action against any proposals that would diminish these earned benefits.  

 

Prior to the Jan. 28 ruling and subsequent policy reversal, the VA made clear the memo would “have no impact on VA health care, benefits, or beneficiaries,” according to a Jan. 28 statement from Acting VA Secretary Todd Hunter. This included GI Bill benefits, which were to continue to both students and schools.

 

As outlined in the original memo, the freeze would not have impacted military pay, retired pay, survivor annuities, disability compensation, or Dependency and Indemnity compensation (DIC). There was no indication that TRICARE benefits would be affected, and administration officials stated Medicare and Social Security payments would continue.

 

[RELATED: Urge Your Lawmakers to Secure Federal Job Protections for Military Spouses]

 

Should the federal government reinstate the freeze as initially outlined in the Jan. 27 memo, these VA-based programs are assessed to be potentially at risk:

  • Veteran suicide prevention grants
  • Job assistance for veterans and spouses
  • VA home loan benefits
  • Grants to support and house homeless veterans
  • Veteran legal services
  • Programs ensuring veterans are honorably memorialized
  • State veterans’ homes
  • Services to help rural veterans access care
  • Recreational programs for disabled veterans

 

Veteran-specific job search programs and employment services for homeless veterans provided by the Labor Department also may be at risk, as are veterans treatment courts administered by the Justice Department.

 

MOAA will keep our membership informed of any updates on federal spending policy, along with any changes to your earned benefits stemming from new federal policy. Visit MOAA’s news page for the latest details.

 

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