State and local agencies across the U.S. were left scrambling this week after President Trump’s order to freeze trillions in federal grants and loans threw their budgets into confusion. Both Democratic and Republican leaders voiced concerns, calling the move chaotic and a threat to critical services like housing and health care.

The freeze, outlined in a brief memo from the White House budget office, lacked details, leaving officials unsure which programs were affected. Despite a federal judge temporarily blocking the order hours before it was set to take effect, some funding had already been cut off, adding to the uncertainty.

“This is creating chaos,” said Arizona Governor Katie Hobbs, a Democrat, in a statement. Other state leaders echoed her frustration, with many unable to assess the immediate impact of the freeze on their operations. In Oklahoma City, for example, officials declined to comment, citing the need for more clarity.

The memo criticized federal funding for initiatives tied to “Marxist equity, transgenderism, and Green New Deal social engineering policies,” aligning with Trump’s broader political agenda. Some Republican leaders, like Texas Governor Greg Abbott, welcomed the move, calling it a necessary step to cut waste and eliminate funding for what they described as radical programs.

“This pause in funding will bring transparency to federal spending and is long overdue,” said Andrew Mahaleris, Abbott’s press secretary.

As the legal battle over the freeze continues, state and local agencies remain in limbo, unsure how to plan for the future. The ripple effects of this abrupt decision could impact millions of Americans relying on federally funded programs.