Governor JB Pritzker addressed the public on Tuesday afternoon, just moments before President Donald Trump’s deadline for federal departments to halt spending on certain financial assistance programs. The governor revealed that they learned about the spending freeze less than 24 hours ago.
Despite the White House’s attempt to freeze billions of dollars in federal grants and loans, a federal judge intervened quickly, temporarily preventing the freeze from taking effect. This intervention provided a brief respite for many organizations.
The proposed freeze has caused significant confusion among the numerous organizations that rely heavily on federal funding to run their operations. Millions of Americans, who rely on the services provided by these organizations, were left uncertain.
Federal Services and Entitlements Unchanged
Federal agencies were instructed to comply by halting spending on any programs that appeared to be in conflict with President Trump’s recent executive orders. These orders targeted several areas, including Diversity, Equity, and Inclusion (DEI) programs, foreign aid, and climate funding.
The incident highlighted the conflict between state and federal directives, prompting many to question the future of critical programs. The Trump administration assures that federal funding for individuals, such as Medicare, will be unaffected.
“This decision has no impact on any services that the government is required to provide. Stephen Miller, the White House Deputy Chief of Staff, stated that it has no effect on citizens’ entitlements or services.
Exemptions from Federal Assistance Pause
According to White House Press Secretary Karoline Leavitt, “The Trump administration’s pause on federal assistance in grant programs is not comprehensive.” Direct assistance to individuals may include, but is not limited to:
- Social Security benefits
- Medicare benefits
- Food stamps
- Welfare benefits
These forms of assistance will not be impacted by this pause.”
Concerns Amidst Assurances
Despite these reassurances, Governor Pritzker noted that the Medicaid system experienced disruptions on Tuesday in Illinois and other states nationwide.
In today’s unfolding events in Illinois, it’s crucial to bring the spotlight to the truth. According to Illinois Governor J.B. Pritzker, the narrative from the Trump administration is misleading.
“The assurances from the White House that Medicaid would remain unaffected are simply untrue,” Pritzker emphasized. “Our state agencies struggled to access the Medicaid system until just an hour ago, which halted payments for essential services.”
The Reality on the Ground
Pritzker claims that these actions are not purely coincidental. He believes that what President Trump is doing is not only questionable, but also illegal. “The impacts of these decisions are far from hypothetical,” Pritzker stated. “They affect real people—everyday Americans who are finding it hard to make ends meet, whether it’s buying groceries, paying rent, or accessing healthcare.”

Legal Battle
Illinois joins 22 other states and Washington, D.C., in a legal fight against the Trump administration. They argue that the president went beyond his authority by denying funds that Congress had already allocated. This move calls into question the administration’s balance of power and adherence to legal frameworks.
“This is outrageous. It is illegal. It is unconstitutional. It’s immoral,” declared Congressman Raja Krishnamoorthi, a Democrat from Illinois. “The president cannot unilaterally cut programs or alter the spending priorities established by the people and Congress.”
Funding Concerns for Organizations
Across the country, and particularly in Illinois, organizations that rely on federal funding are now forced to rely on the established system of checks and balances to protect their operations.
El Valor: A Beacon of Support
El Valor, a Chicago-area nonprofit, is one such organization that provides critical support to children, people with disabilities, and their families. According to Executive Director Jillian Gonzalez, roughly two-thirds of their financial resources come from the federal government.
“We are considering the worst-case scenario as an organization,” Gonzalez stated. “Our focus is on how we can operate on a shoestring budget while ensuring that our employees receive their paychecks, as they are critical to the economy. In addition, we are planning how to maintain access to critical services for families in urgent need.”
Professor Criticizes Trump’s Federal Grants Freeze as a Political Stunt
John Pellar, President and CEO of the AIDS Foundation Chicago, passionately explains that his organization’s mission is twofold: to end the HIV epidemic and to address homelessness. Both of these pressing issues disproportionately affect people of color.
“We understand that when individuals living with HIV face unstable housing, they struggle to take their medications effectively to manage their HIV condition,” Pellar pointed out. Pellar raised a growing concern: 80% of their funding comes from the federal government. Unfortunately, they were unable to access these necessary funds on Tuesday.
“It was like checking your bank account and suddenly finding it ‘blocked’ when we tried to access the portal for downloading federal grants,” Pellar told CNN. Congressman Mike Quigley, of Illinois, stated that the president lacks the authority to unilaterally halt such critical funding. “These are funds that have been authorized, appropriated, and signed into law,” Quigley told reporters.
How a Freeze on Federal Grants and Loans Could Impact Chicago and Illinois
Quigley, a key member of the House Appropriations Subcommittee on Transit and Housing, stressed that committed funds, such as the significant $2 billion set aside for the CTA Red Line expansion, are untouchable and cannot be suspended.
He expressed a sense of urgency: “The day after the election, I immediately reached out to Governor Pritzker and Dorval Carter, urging them to finalize this deal without delay,” Quigley said. Earlier on Tuesday, Mayor Brandon Johnson of Chicago issued a strong response to the impending grant freeze.
“Here’s what I firmly believe: It is the federal government’s responsibility to ensure that every resident in this country receives adequate investments. This is critical not only for maintaining vibrancy, but also for allowing people to pursue happiness, which is a fundamental right guaranteed by our Constitution,” Johnson stated.