A U.S. District Judge is expected to extend a temporary block on President Donald Trump's plan to halt federal grants and loans, a move that could impact trillions of dollars in government funding. The judge expressed concern about nonprofit groups at risk of shutting down due to the funding freeze, despite the White House rescission of the memo pausing the grants.
A judge is likely to extend a temporary block on President Donald Trump's plan to halt federal grants and loans, which originally targeted a wide range of funding totaling potentially trillions of dollars. U.S. District Judge Loren L. AliKhan in Washington expressed concern about nonprofit groups at risk of shutting down, even after judges ordered a halt to funding freezes.
The order on the federal grant freeze has sparked widespread confusion over the last week among Americans and organizations that rely on Washington for their financial lifeline. Last week, AliKhan temporarily blocked President Donald Trump's freeze on federal grants and loans. The judge blocked the action minutes before it was set to go into effect. Then on Jan. 29, the White House Office of Management and Budget rescinded the Trump administration memo pausing federal loans, grants, and other financial assistance. Administration officials insisted that despite the confusion, the order still had its intended effect by underscoring to federal agencies their obligations to abide by Trump's executive orders. The White House confirmed that OMB pulled the memo Wednesday in a two-sentence notice sent to agencies and departments, but said that Trump's underlying executive orders targeting federal spending in areas like diversity, equity and inclusion and climate change, remained in place. Following the news, White House Press Secretary Karoline Leavitt clarified that the rescission was on the memo itself, but not on the executive order. 'This is NOT a rescission of the federal funding freeze,' she said on the social media platform X. 'It is simply a rescission of the OMB memo. Why? To end any confusion created by the court's injunction. The President's EO's on federal funding remain in full force and effect, and will be rigorously implemented.' Trump issued a directive last week to temporarily suspend all federal grants and loans, a move that could impact trillions of dollars in government funding and disrupt vital public programs relied upon by millions of Americans. According to the White House memo, the suspension would begin on Jan. 28 at 5 p.m. EST. However, federal judge AliKhan temporarily blocked Trump's freeze minutes before it was set to go into effect. The memo, written by Matthew J. Vaeth, the acting director of the Office of Management and Budget, said federal agencies would need to temporarily pause all activities related to obligation or disbursement of all Federal financial assistance including, but not limited to, 'financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology and the Green New Deal.' Administration officials said the decision was necessary to ensure that all funding complied with Trump's executive orders. Administration officials said federal assistance to individuals would not be affected, including Social Security, Medicare, food stamps, student loans and scholarships. 'If you are receiving individual assistance from the federal government, you will still continue to receive that,' Leavitt said. 'However, it is the responsibility of this president and this administration to be good stewards of taxpayer dollars.' The suspension specifically targeted financial assistance related to foreign aid, nongovernmental organizations, diversity and equity and the Green New Deal. However, the sweeping scope of the freeze raised concerns about possible disruptions to educational funding, with education programs potentially being impacted. It also became unclear Tuesday whether Medicaid would be affected
FEDERAL FUNDING TRUMP ADMINISTRATION EXECUTIVE ORDERS NONPROFIT GROUPS JUDGE LEGAL CHALLENGES
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