Trump’s Federal spending is 3 trillion dollars in oblivion, and threatens industries such as clean energy, defense and health care – Lucaen: LMT, HCA Healthcare (NYSE: HCA)

The White House has commanded a temporary freeze on all scholarships and federal loans, putting 3 trillion dollars in financing under scrutiny and the road theater for the legal and political confrontation on the power of Congress for a portfolio that can strongly affect a wide range of industries.

The guidance, which was released on Monday by the administration and budget office and received by many media outlets, requires all federal agencies to stop payments while reviewing programs to agree with the president Donald TrumpPolitics priorities.

This includes stopping the new prizes, current payment and financing for projects until a review.

The exact financial impact of the matter is still uncertain. Budget experts were martyred By Washington Post Estimating at least tens of billions of dollars at stake, although guiding the White House indicates that the total can be much higher.

Of nearly $ 10 trillion, the federal government spent 2024, more than 3 trillion dollars was federal financial assistance, Matthew FaithActing Director at OMB, and said in the memo.

“The financial assistance must be allocated to develop management priorities,” Fayth said, adding that “the use of federal resources to enhance Marxist property, sexual transformation, and new green social engineering policies Matter
Taxers of taxpayers that do not improve the lives of those we serve. “

The White House said that social security and medical care are still not touching. The overall temporary suspension threatens to finance universities, non -profit organizations, contractors and private federal assistance companies.

The memo said: “Nothing should be explained in this memo to influence the advantages of medical care or social security.”

The immediate focus will be on how agencies deal with exemptions. OMB Memorandum of Federal Cars allows for approvals separately, which means that some financing may still flow, but the process is likely to be slow and political.

Federal agencies, until February 10, 2025, enjoy OMB with detailed reports that define programs, projects and activities affected by the funding financing.

Legal political confrontation On federal funds

This step leads to legal challenges from non -profit organizations and democracy -led countries.

Within hours of announcement, lawsuits were filed in the federal courts in New York, Illinois and Oregon, arguing that Trump has no power to withhold spending approved from Congress.

The leader of the minority in the Senate Chuck Shomer Among the first to retreat, saying that the investments approved by Congress were lawful and confirm that the president lacks the authority to overcome the reservation law of 1974, which unilaterally restricts executive control over federal funds.

Trump has long argued that the 1974 law is unconstitutional, noting that former presidents have a much greater discretionary authority over spending before its approval.

What industries can face trouble?

Some of the most difficult sectors can include clean energy, defense, health care and education, as federal dollars have played a decisive role in leading investment and growth in recent years.

The OMB Memorandum of Trump targets climate initiatives explicitly and green energy programs. The shares of solar and renewable energy companies were among the most difficult damage after freeing federal financing.

the Investco Solar Etf Tan and Investco Wilderhill Clean Energy Etf Pbw It decreased by 2 % and 1.3 %, respectively, on Tuesday.

Sunnova Energy International Inc. Nova Decline 12 %, Sunrun Inc. Run He falls 9.2 % and Solaredge Technologies Inc. SEDG 5 % decreased.

Defense contractors like Lockheed Martin Company LMTand RTX Corp. RTX and Northrop Grouman Noc You may also see high uncertainty. While military spending is unlikely to be cut directly, many defense contractors depend on federal scholarships for research and development.

The effect on health care is still unclear. While medicare is protected, the financing of medicaid – which supports hospitals, managed care providers and pharmaceutical companies – may be in danger.

HCA Healthcare Inc. HCA and Universal Health Services Inc. UHS It decreased by 1 % and 1.4 %, respectively, while Tealtecare Corp. Thc Flexibility showed on Tuesday.

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