Home Globe Judge blocks Trump’s freeze on federal grants and loans ahead of immediate impact

Judge blocks Trump’s freeze on federal grants and loans ahead of immediate impact

by editor

A U.S. judge has put a temporary halt to President Donald Trump’s directive to freeze hundreds of billions of dollars in federal grants and loans, just minutes before the order was scheduled to take effect on Tuesday. Judge Loren AliKhan issued her ruling to pause the enforcement of the plan until next Monday at 5:00 PM EST (10:00 PM GMT), following a lawsuit filed earlier in the day by various organizations advocating for grant recipients.

The lawsuit contends that the White House’s abrupt suspension of already approved funding goes against legal standards. As the enforcement deadline approached, uncertainty loomed over which federal agencies and programs would feel the repercussions of such a freeze.

Confusion and Reactions to the Freeze

The acting head of the White House Office of Management and Budget had directed agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.” This directive was described as a necessary measure to provide the new administration with time to review which grants and loans aligned with its agenda.

White House Press Secretary Karoline Leavitt articulated that Trump’s funding freeze was an effort to be “good stewards of tax dollars.” In her first press briefing, she stated that the funding pause would enable a reassessment of spending directed towards “woke” gender issues and diversity initiatives. However, this announcement sparked significant confusion and outrage among opposition figures, as recipients of federal loans and grants—including non-profit organizations and research institutions—faced the immediate threat of losing critical funding.

“Our lawsuit was successful – the US district court is blocking OMB from moving forward on its reckless plan to halt federal funding,”

wrote Diane Yentel, president of the National Council of Nonprofits, in a post on X, celebrating the court’s ruling. The lawsuit highlighted concerns that Trump’s order aimed to “eradicate essentially all federal grant programs.” Judge AliKhan emphasized that her stay would “preserve the status quo” until further oral arguments could be held on Monday.

Widespread Implications of the Order

If implemented, the White House’s directive could have jeopardized billions of dollars earmarked for essential federal programs, spanning from disaster relief to cancer research. The ruling has drawn attention to the potential chaos that could ensue if the freeze were to be enacted, with Democrats expressing grave concerns about the order’s broader implications.

In a letter directed to the White House, leading Democrats voiced their “extreme alarm” over the proposed funding halt. “The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country,” wrote Washington Senator Patty Murray and Connecticut Congresswoman Rosa DeLauro.

Senate Minority Leader Chuck Schumer described the funding freeze as a catalyst for missed payrolls and rent payments, predicting it would create “chaos” across various sectors reliant on federal support.

In the meantime, several states reported difficulties accessing funds through the Medicaid program, which provides health insurance for low-income individuals. The White House later clarified that Medicaid would not be affected and that the issues would be resolved swiftly. Additionally, assurances were made that Social Security benefits and other direct assistance programs like Supplemental Nutrition Assistance Program (SNAP) would remain intact.

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