A federal judge has temporarily halted the Trump administration's sweeping directive to pause federal grants and loans, bringing relief to states, local governments, and nonprofits who feared the potential disruption of essential services. The decision came after a tumultuous 48 hours marked by confusion and legal challenges.
A federal judge has temporarily blocked the Trump administration's freeze on federal grants and loans, causing chaos for agencies across the country. The policy reversal follows a tumultuous 48 hours for the White House, as states and local governments raised concerns that funding for healthcare, law enforcement, disaster aid, and infrastructure spending could be paused or delayed during the expansive rollout of the policy. Amid the confusion, a federal judge in Washington, D.C.
, issued a stay of the policy through Monday as lawyers for the Department of Justice struggled to confirm the extent of the directive. 'Without this funding, Plaintiff States will be unable to provide certain essential benefits for residents, pay public employees, satisfy obligations, and carry on the important business of government,' 22 state attorneys general had said in the lawsuit challenging the policy Tuesday. On Monday, the Office of Management and Budget ordered federal agencies to freeze any federal funding to activities that might be implicated by Trump's executive orders, causing states, local governments, and nonprofits to scramble to determine if their funding would be cut off. Less than 24 hours after the policy was revealed, the White House attempted to clarify the policy in a memo, saying programs that provide direct benefits to Americans -- such as Social Security, Medicare, and SNAP benefits -- would be excluded from the freeze. During the hearing Tuesday, the lawyer for the Department of Justice struggled to clarify exactly what would be affected. 'It seems like the federal government currently doesn't actually know the full scope of the programs that are going to be subject to the pause. Is that correct?' U.S. District Judge Loren L. AliKhan asked. 'I can only speak for myself, which is just based on the limited time frame here, that I do not have a comprehensive list,' DOJ lawyer Daniel Schwei said, adding, 'it just depends' on the type of program and funding source
FEDERAL GRANTS LOANS TRUMP ADMINISTRATION LEGAL CHALLENGE STATES LOCAL GOVERNMENTS
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