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Thursday, January 30, 2025
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Federal judge temporarily blocks Trump administration freeze on federal grants & loans

publish time

29/01/2025

publish time

29/01/2025

DCBC114
People protest against a funding freeze of federal grants and loans following a push from President Donald Trump to pause federal funding near to the White House in Washington on Jan 28. (AP)

WASHINGTON, Jan 29, (AP): A federal judge on Tuesday temporarily blocked a push from President Donald Trump to pause federal funding while his administration conducts an across-the-board ideological review to uproot progressive initiatives. The order capped the most chaotic day for the US government since Trump returned to office, with uncertainty over a crucial financial lifeline causing panic and confusion among states, schools and organizations that rely on trillions of dollars from Washington.

US District Judge Loren L. AliKhan blocked the funding freeze only minutes before it was scheduled to take effect. The administrative stay, prompted by a lawsuit brought by nonprofit groups that receive federal money, lasts until Monday afternoon. Another court hearing is scheduled that morning to consider the issue. The White House did not immediately comment on the order, which leaves unresolved a potential constitutional clash over control of taxpayer money.

Democrats who have struggled to gain a foothold during Trump's second term unleashed on the Republican president, describing his actions as capricious and illegal. Administration officials said the decision to halt loans and grants was necessary to ensure that spending complies with Trump’s recent blitz of executive orders. The Republican president wants to increase fossil fuel production, remove protections for transgender people and end diversity, equity and inclusion efforts.

But a vaguely worded memo issued by the Office of Management and Budget, combined with incomplete answers from the White House throughout the day, left lawmakers, public officials and average Americans struggling to figure out what programs would be affected by the pause. Even temporary interruptions in funding could cause layoffs or 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 countless districts that receive federal funding.

Now they're trying to figure out what it means "based on zero information." Democrats argued that the president had no right to unilaterally stop spending money appropriated by Congress. Just minutes after AliKhan made her ruling, Democratic attorneys general from 22 states and the District of Columbia filed their own lawsuit seeking to block and permanently prevent the administration from cutting off federal funding.