A sudden freeze on federal grants by the Trump administration caused a stir on Tuesday, leaving state Medicaid agencies scrambling and confused. While the White House claimed Medicaid wasn’t impacted, state officials found themselves locked out of the system used to access crucial funds for hours.

The confusion deepened when a memo from the Office of Management and Budget initially failed to mention Medicaid in its list of programs unaffected by the freeze. A follow-up clarification confirmed Medicaid and SNAP (food stamps) would continue as usual—but not before Medicaid portals across all 50 states went down temporarily.

At a press briefing, White House Press Secretary Karoline Leavitt couldn’t immediately confirm whether Medicaid funds were safe, later assuring the public that the portal would be restored. “No payments have been affected,” she stated on X, adding that payments were still being processed.

Meanwhile, a federal judge stepped in, temporarily blocking parts of the administration’s funding freeze. This came after state Medicaid agencies reported losing access to the Payment Management Services system, which is vital for distributing funds to healthcare providers and insurers.

Senator Ron Wyden of Oregon called the freeze a “blatant attempt to rip away health insurance from millions of Americans,” warning of life-threatening consequences. Some states, like Connecticut, regained access by Tuesday afternoon, but the incident has left many uneasy about the stability of Medicaid funding.

Medicaid serves over 72 million low-income Americans, making this freeze a high-stakes issue. While access was eventually restored, the chaos highlights the fragility of systems millions rely on for essential healthcare. This story serves as a reminder of how decisions at the federal level can ripple through states and impact everyday lives.