Illinois has been shut out of Medicaid, just hours after President Donald Trump’s administration announced a pause in federal grants, loans and other financial assistance as they begin a review of spending.

The funding freeze could affect trillions of dollars and cause widespread disruption in health care research, education programs and other initiatives. Grants that have been awarded but not spent are also halted, according to the Associated Press.

Though the funding freeze was supposed to take effect at 4 p.m. Central Time Tuesday, Gov. JB Pritzker’s office staid that the state of Illinois was shut out of Medicaid as of Tuesday morning. The government-funded health insurance program covered about 3.9 million people in Illinois in 2023, including low-income adults, children, pregnant women and people with disabilities.

“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” Matthew Vaeth, the acting director of the Office of Management and Budget, wrote in the memo. “This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements.”

Vaeth wrote that each agency must complete a comprehensive analysis of all federal financial assistance programs.

“In the interim, to the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders…”

Mayor Brandon Johnson said he was in contact with Illinois senators Dick Durbin and Tammy Duckworth to figure out exactly what a funding freeze would mean for the city.

“These are unprecedented attempts to attempt to defund childcare or to defund infrastructure projects. This is something that is well outside the purview of the executive office,” Johnson said at a City Hall news conference. “These appropriations have been mandated by the legislative branch. These are laws. And you know, we as a country of law, as a democracy, we prefer when we have leaders who actually are committed to upholding that law.”

Durbin called the freeze “unconstitutional” and “above all else, it’s inhumane.”

“Every American relies on federal funding—from public safety, disaster relief, medical research funding, and small business loans to Head Start and child care programs, veterans care, nutrition assistance, food inspections, and so much more,” Durbin said in a statement. “Denying critical funding for our families will not make America great.”

While Pritzker, Johnson and other Chicago area officials grappled with what the federal funding freeze might mean, researchers at the University of Chicago were already being directed to rein in any work that relies on dollars from Washington.

In a faculty memo, UChicago Provost Katherine Baicker told faculty to not to “purchase new supplies or equipment, start new experiments, embark on funded travel, etc.”

“This is not a request that I make lightly. The research enterprise is at the core of our University’s mission and is of profound importance to the daily work of our faculty, researchers, staff, and students. I also know that this is insufficient guidance and that you must have many questions (as do I),” Baicker wrote.

“I wish that I had more information to share now, but will continue to be in touch as we learn more. But we must for now proceed under the assumption that grant expenditures incurred after today while this memorandum is in effect may not be covered by federal funding.”

On the Senate floor, Minority Leader Chuck Schumer, D-NY, called on Trump to “rescind this order at once.”

“People are worried. People are scrambling. People are in panic mode, trying to figure out how this order is going to affect them. Hospitals with people on life support, food pantries that feed the hungry, police departments that patrol our streets. Every one of them is worried,” Schumer said.