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Home News Federal Judge Blocks Trump Administration’s Freeze On Federal Grants And Loans

Federal Judge Blocks Trump Administration’s Freeze On Federal Grants And Loans

by Celia
Judges

A federal judge temporarily blocked President Donald Trump‘s plan to pause federal funding on Tuesday. The move came just minutes before the freeze was set to take effect. The decision was prompted by a lawsuit filed by nonprofit groups that rely on federal money. The temporary injunction will last until Monday afternoon, with another court hearing scheduled for that morning.

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The order came amid a chaotic day for the US government, with states, schools, and organizations scrambling to understand the implications of the funding pause. The uncertainty caused panic, especially among those who depend on trillions of dollars in federal support.

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US District Judge Loren L. AliKhan issued the temporary stay, questioning the clarity and scope of the funding freeze. She noted that the federal government seemed uncertain about which programs would be affected. The White House did not immediately comment on the judge’s order, which leaves unresolved a potential constitutional conflict over control of taxpayer dollars.

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Democrats, who have struggled to gain ground during Trump’s second term, condemned the move as arbitrary and illegal. Democratic attorneys general from 22 states and the District of Columbia filed their own lawsuit shortly after the judge’s ruling, seeking to permanently block the funding freeze.

Administration officials argued that the pause was necessary to ensure that spending aligns with Trump’s recent executive orders. These orders aim to increase fossil fuel production, remove protections for transgender people, and end diversity, equity, and inclusion efforts.

However, a vaguely worded memo from the Office of Management and Budget and unclear statements from the White House left many confused about which programs would be impacted. Even temporary interruptions in funding could lead to layoffs and delays in public services.

“This sort of came out of the blue,” said David Smith, a spokesperson for the Shawnee Mission School District in Kansas, one of many districts that receive federal funding. He noted that they were trying to understand the implications “based on zero information.”

Democratic senators reported receiving panicked calls from communities concerned about the impact on programs for children, seniors, public works, and disease research. New York Attorney General Letitia James called the policy “reckless, dangerous, illegal, and unconstitutional.”

The Trump administration clarified that direct assistance programs like Medicare, Social Security, student loans, and food stamps would not be affected. However, confusion remained, with some officials initially unsure about the status of Medicaid funding.

The full scope of the review was outlined in a 51-page spreadsheet sent to federal agencies. It included questions about whether programs promoted “gender ideology” or abortion. Responses are due by February 7.

Grants that have been awarded but not spent are also under review, potentially affecting trillions of dollars. The Office of Management and Budget’s acting director, Matthew Vaeth, wrote that the pause aimed to stop the use of federal resources for “Marxist equity” and “transgenderism.”

The funding freeze was scheduled to take effect at 5 p.m. EST, just one day after agencies were informed. White House press secretary Karoline Leavitt said the administration was trying to ensure that funding aligned with the priorities of the American people.

The attempt to implement the funding pause is part of Trump’s broader effort to advance his conservative agenda. This includes directives for federal employees to report colleagues who continue diversity, equity, and inclusion initiatives.

Democrats condemned the move, arguing that it would disrupt essential services in both red and blue communities. Leavitt, however, denied that Trump was challenging Congress’s control over the federal budget, saying he aimed to be a “good steward” of public money.

The temporary injunction provides some relief, but the broader issue remains unresolved as the court hearing approaches.

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