Wednesday, January 29, 2025 - A judge temporarily blocked President Donald Trump's federal funding freeze just moments before it was set to go into effect on Tuesday, January 28.
U.S. District Judge Loren Ali Khan blocked the Trump
administration's pause on federal grants, loans, and other financial assistance
which could have totaled trillions in funding.
The stunning move came after the White House spent
most of the day attempting to clarify its spending freeze amid widespread
confusion over which programs would be impacted.
The Trump announcement sent shockwaves through Washington
after the White House budget office late Monday issued the sweeping order.
It would have halted taxpayer money from being doled out for
initiatives in education and health care, housing assistance, disaster relief,
and a host of other areas pending a review.
The administration argued the funding should be put on hold
while officials ensured no publicly funded programs are 'woke,' and that all
are in line with executive orders he signed last week abolishing the
government's DEI agenda.
The memo reiterated that the pause was not meant to target
any 'assistance provided directly to individuals,' such as Medicare or Social
Security.
But the move faced immediate backlash as it was not clear
how the spending freeze would impact programs such as Medicaid, SNAP, and other
government assistance.
It was estimated the pause would have frozen up to $3
trillion in federal grants and loans.
Democratic lawmakers on Capitol Hill on Tuesday blasted the
president, calling the effort unconstitutional and an attempt to consolidate
power.
They said they were already receiving calls from panicked
constituents and businesses in their states on what the directive would mean
for them.
Earlier Tuesday, the National Council of Nonprofits, the
American Public Health Association, Main Street Alliance, and SAGE sued over
the order.
At the hearing in Washington on Tuesday, AliKhan
ordered the Trump administration not to block funds that were already slated to
go out until at least February 3.
The judge said her ruling was intended to maintain status
quo, but it would not stop the administration from pausing funding for new
programs or restarting funds that had already ended.
The CEO of the National Council of Nonprofits, Diane Yentel,
reacted to the ruling on X, posting 'We did it (for now)!'
'Our lawsuit was successful - the US district court is
blocking OMB from moving forward on its reckless plan to halt federal funding,'
she continued but noted their fight was not over.
'For now - thank you all for your support, partnership, and
leadership. Take a breath, take a rest, and buckle up - we’re not done,' Yentel
wrote.
Another hearing is scheduled for Monday to determine next
steps.
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