The Trump administration’s decision to temporarily stop federal payments is already impacting programs in Michigan. The Michigan State Housing Development Authority (MSHDA) has canceled a training session for a proposed pilot program under its single-family mortgage program due to the freeze on federal financial assistance. The freeze, announced in a memo by the Office of Management and Budget, affects grants and loans across all federal agencies.
Michigan Attorney General Dana Nessel has expressed concerns about the impact on state services like Medicaid and Head Start. Nessel is working to discern the immediate impacts of the freeze and is planning to file litigation to restore funding and protect vital services. The decision by MSHDA to pause new programs launching is in response to the federal directive and to maintain agency stability.
Governor Gretchen Whitmer has also issued a directive for state departments to review executive orders from President Trump for compliance on programs receiving federal funds, specifically focusing on diversity, equity, and inclusion policies. While the training for the pilot program has been canceled, MSHDA assures that existing single-family mortgage programs will not be affected.
The impact of the federal payment freeze is being felt in Michigan, and state officials are working to understand the extent of the situation and take legal action to protect essential services. The pause on new programs launching and cancellation of the training session are measures taken by MSHDA in response to the federal directive to temporarily halt financial assistance.
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