The James H. Shannon Building (Building One) on the NIH campus in Bethesda, Maryland. (Photo by Lydia Polimeni,/National Institutes of Health)

President Donald Trump’s freeze on $8 billion of congressionally appropriated funding to the National Institutes of Health was illegal, the Government Accountability Office reported Tuesday.

Orders Trump signed in the early days of his return to office and related administration directives violated the Impoundment Control Act by failing to spend money that Congress, which holds the power of the purse under the Constitution, had approved, the GAO report said.

Roughly 1,800 grants for health research were held up by the administration, the report said.

Trump’s Inauguration Day order ceased funding for a variety of health research grants that related to diversity, equity and inclusion, transgender issues or environmental harms. The Department of Health and Human Services issued a memo directing its agencies, including NIH, to cease publishing notices in the Federal Register of meetings of grant review boards.

GAO, an independent investigatory agency that reports to Congress, called those meetings “a key step in NIH’s grant review process.” HHS has since restarted notices of the meetings.

From February to June, the NIH released $8 billion less than it obligated in the past two years, representing a drop-off of more than one-third, according to the GAO. The gap between 2025 spending and that of previous years continued to grow, GAO said, with NIH obligating a lower amount of grant funding each month.

Illegal impoundment

The failure to fund grant awards violated the Impoundment Control Act and the Constitution, which certified Congress as the branch of government responsible for funding decisions, said GAO.

If a law is passed by Congress and signed by a president, it must be carried out by the executive branch, the watchdog said.

“The President must ‘faithfully execute’ the law as Congress enacts it,” the report said. “Once enacted, an appropriation is a law like any other, and the President must implement it by ensuring that appropriated funds are obligated and expended prudently during their period of availability unless and until Congress enacts another law providing otherwise. … The Constitution grants the President no unilateral authority to withhold funds from obligation.”

There are specific circumstances that allow for a funding freeze — a rescissions law, such as the one Congress passed last month to defund public broadcasters and foreign aid, is one example — but they did not apply to this case, the GAO said.

Delays may be permissible to allow a new presidential administration to ensure grants are awarded based on its priorities. But a complete block on funding is illegal, the GAO said. There is no evidence that other grant awards — or any other type of funding at HHS — took the place of the $8 billion in unspent grant money, the report said.

“While it can be argued that NIH reviewed grants to ensure that funds were spent in alignment with the priorities of the new administration, NIH did not simply delay the planned obligations of the funds,” the GAO said. “Rather, NIH eliminated obligations entirely by terminating grants it had already awarded.”

GAO can sue the executive branch based on its findings. The report noted there is already litigation from other parties over the frozen grants.

Dems call for reinstatement

Congressional Democrats responded to the report by harshly criticizing Trump and White House Office of Management and Budget Director Russ Vought and calling for the funds’ release.

“This is simple – Congress passed and the President signed into law investments in NIH research to help find cures and treatments for cancer, Alzheimer’s disease, ALS, diabetes, mental health issues, and maternal mortality,” U.S. House Appropriations Committee ranking Democrat Rosa DeLauro of Connecticut said in a statement. “But now, GAO has determined that President Trump and OMB Director Vought illegally withheld billions in funding for research on diseases affecting millions of American families—research that brings hope to countless people suffering.”

Senate Appropriations Vice Chair Patty Murray, a Washington state Democrat, said in a statement the funding freeze “dangerously set back” efforts to cure cancer, Alzheimer’s and other diseases.

“Today’s decision affirms what we’ve known for months: President Trump is illegally blocking funding for medical research and shredding the hopes of patients across the country who are counting on NIH-backed research to propel new treatments and cures that could save their lives,” Murray said. “It is critical President Trump reverse course, stop decimating the NIH, and get every last bit of this funding out.”

An HHS spokesperson deferred a request for comment Tuesday to OMB.

An agency investigated by the GAO is generally given a draft of the watchdog’s findings and asked to respond.

The HHS response, obtained by States Newsroom, said grant reviews were back on schedule, though it did not address grant obligations.

“Despite the short delay in scheduling and holding peer review and advisory council meetings to allow for the administration transition, NIH has been on pace with its reviewing grant applications and holding meetings and has caught up from the pause when compared to prior years,” the response said.

GAO’s summary of the HHS response said the department had restarted meetings of grant review boards and provided some “factual information” but did not justify the lack of grant spending or provide current status of payments for previously approved grants. 

Federal payments for Head Start this year were significantly behind schedule compared with 2024 and that violated the Impoundment Control Act, according to the nonpartisan Government Accountability Office. (Photo by SDI Productions via Getty Images)

The Health and Human Services Department illegally withheld payments from Head Start for the first months of President Donald Trump’s term, a government watchdog reported Wednesday.

HHS payments for Head Start this year were significantly behind schedule compared with 2024. That violated the Impoundment Control Act, a law governing the president’s duty to spend congressionally appropriated funds, according to a report from the nonpartisan Government Accountability Office.

The law, sometimes called the ICA, allows the president to withhold appropriated funds in some circumstances. But the publicly available data did not show those conditions were met and HHS did not mount any defense prior to the report’s publication, according to the GAO.

“Because that evidence indicates that HHS withheld appropriated funds from expenditure, and because the burden to justify such withholdings rests with HHS and the executive branch, we conclude that HHS violated the ICA by withholding funds,” the report said.

Before the report’s publication, HHS did not provide the GAO with information requested by the watchdog or a legal analysis, according to the report, which was signed by GAO General Counsel Edda Emmanuelli Perez.

However, an HHS spokesperson told States Newsroom in a Wednesday email that it would respond to the GAO and disputed the report’s conclusion.

“HHS did not impound Head Start funds and disputes the conclusion of the GAO report,” the spokesperson wrote. “GAO should anticipate a forthcoming response from HHS to incorporate into an updated report.”

How Head Start works

Head Start is a federal grant program to fund pre-kindergarten services for low-income families. The federal government provides up to 80% of a local program’s eligible costs, the report said. As of last year, 1,600 organizations received Head Start funding for education, nutritional, health and social services.

Organizations receiving Head Start funding generally win grant approvals for five years at a time. Programs in good standing are automatically renewed, according to the report.

Mere days after Trump took office in January, dozens of Head Start grant recipients found they were unable to access funds they’d expected from HHS, according to a Jan. 28 statement from the National Head Start Association, a coalition of grantees.

GAO’s analysis showed the department disbursed about one-third less grant funding in the first three months of the Trump administration than it had over the same period in 2024. The difference amounted to $825 million less for Head Start grants over those months.

The law does allow for HHS to stop funding for grantees before the end of the five-year period under certain circumstances, such as for failing to meet performance standards or becoming under-enrolled.

In those cases, though, HHS must warn the programs of potential cuts in grants, provide a detailed plan the organization can implement to avoid grant cancellation and give the grantee a fair hearing as well as the ability to apply for refunding — all before funding can be cut off, according to the GAO report.

There is no indication HHS took any of those steps before abruptly cutting funds in January, according to the report.

‘The president is not a king’

Sen. Patty Murray, the top Democrat on the U.S. Senate Appropriations Committee, blasted President Donald Trump and his HHS in a lengthy statement that asserted Congress’ power over spending decisions and admonished the administration for harming an important program for working families.

“Trump has signaled he would like to eliminate Head Start—but that’s not his choice to make,” Murray said. “Congress delivered this funding for Head Start on a bipartisan basis, and instead of trying to destroy preschool programs and breaking our laws to hurt working families, President Trump needs to ensure every penny of these funds get out in a timely, consistent way moving forward—and he must also finally get out the rest of the investments he has been robbing the American people of.”

Oregon Democrat Jeff Merkley, the ranking member of the Senate Budget Committee, highlighted Congress’ role in directing federal funding, calling on Trump and White House Budget Director Russell Vought to comply with appropriations laws.

“The President is not a king, and laws are not suggestions,” Merkley said in a statement. “Once again, we’re seeing proof that this administration is in clear violation of the law under the Impoundment Control Act. The funds appropriated by Congress are not merely suggestions for Donald Trump and Russ Vought to ignore – these are funds that hardworking families rely on, and Head Start is essential to making sure the doors of opportunity are open to every child in our country.”

ACLU lawsuit

The GAO report did not list any further action the agency would take but did note that litigation over the withheld funding is ongoing.

The American Civil Liberties Union filed a suit in April in federal court in Seattle that included parents and Head Start grant recipients.

The suit described widespread confusion that Head Start organizations experienced when they could not access expected federal funding, compounded by cuts to support staff in regional offices.

No cooperation

The report detailed the lack of participation by HHS in the GAO’s investigation and tied it to a separate legal fight involving a public website.

“HHS has not provided the information we requested regarding factual information and its legal views concerning the potential impoundment of appropriated funds,” the report said.

Without information from the administration, the watchdog based its findings on publicly available data.

The White House Office of Management and Budget added an obstacle to that task, the watchdog said.

The office “removed agency apportionment data from its public websites, which is both contrary to OMB’s duty to make such information publicly available and to GAO’s statutory authority to access such information,” the GAO report said.

On that question, a federal judge on Monday ordered the Trump administration to once again publish details about the pace at which it plans to spend money approved by Congress.

U.S. District Court for the District of Columbia Judge Emmet Sullivan wrote in his ruling that Congress “has sweeping authority” to require the president to post a website detailing how it doles out taxpayer dollars throughout the year.