A federal judge has temporarily halted the Trump administration's plan to freeze federal aid to nonprofit organizations, pending a hearing on Monday. The judge granted an administrative stay, pausing the disbursement of funds in open grants while she considers arguments from both sides.
A federal district judge temporarily halted the Trump administration's planned freeze on federal aid to nonprofit organizations on Tuesday, giving both sides a week to prepare for further arguments. Judge Loren AliKhan granted the administrative stay, pausing the disbursement of funds in open grants, pending a hearing scheduled for Monday morning.
The order doesn't address the legality of the freeze but allows AliKhan to hear more detailed arguments from a coalition of nonprofit groups seeking a temporary restraining order that could block the freeze for an additional two weeks. The hearing is set for 11 a.m. Monday. AliKhan issued the stay just minutes before the freeze was set to take effect at 5 p.m. Tuesday. During a hastily arranged hearing late Tuesday afternoon, AliKhan heard brief arguments from lawyers representing both the Justice Department and the National Council of Nonprofits, which filed the lawsuit earlier that day alleging the funding freeze would cause irreparable harm to its members. Jessica Morton, a lawyer for the nonprofit groups, argued that the end of the month brought imminent financial pressures for nonprofits and grant recipients facing payroll and rent payments. She emphasized that these organizations provide essential services not only to their members but also to the public. Morton highlighted the confusion and uncertainty caused by the Office of Management and Budget's (OMB) guidance on the freeze, which lacked clarity and specificity. A lawyer for the Justice Department countered by stating that the nonprofit groups had not demonstrated that any delay in receiving federal funds would force them to close their doors or lay off staff. AliKhan acknowledged the Justice Department's argument but expressed sympathy for the nonprofits' concerns. She pointed out that the freeze was announced abruptly through the press, leaving little time for organizations to gather necessary information and prepare legal responses. The judge stated her willingness to vacate the administrative stay on Monday if she was not convinced that the nonprofit groups had met the required standard for a temporary restraining order. The planned freeze is part of President Donald Trump's broader effort to reduce government spending that doesn't align with his agenda. The acting director of the OMB announced the freeze in a memo Monday night, instructing agencies to 'temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.' The memo further specified that the freeze encompassed various programs, including financial assistance for foreign aid, nongovernmental organizations, diversity, equity, and inclusion (DEI) initiatives, gender ideology, and the Green New Deal. The immediate impact of the freeze sparked confusion about its scope and application. Tuesday's court order marks the beginning of what is anticipated to be a significant legal battle, potentially reaching the Supreme Court.
FEDERAL AID NONPROFIT ORGANIZATIONS TRUMP ADMINISTRATION COURT ORDER LEGAL BATTLE SUPREME COURT
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