A group of nonprofits, health workers, and small business owners, along with six state attorneys general, are challenging the Trump administration's freeze on federal loans and grants, arguing it is illegal and harmful.
A coalition of nonprofits, healthcare professionals, and small business owners has urgently requested a federal judge in Washington, D.C., to immediately halt the Trump administration's impending freeze on federal loans and grants, scheduled to take effect at 5 p.m. Tuesday. Concurrently, the attorneys general of six states—New York, California, Illinois, Massachusetts, New Jersey, and Rhode Island—have announced their intention to file a lawsuit challenging the freeze's legality.
New York Attorney General Letitia James, spearheading the legal challenge, denounced the policy as 'reckless, dangerous, illegal, and unconstitutional,' emphasizing its potential to disrupt the lives of millions of Americans. She highlighted the far-reaching consequences, from families reliant on Head Start for childcare to children depending on SNAP for meals and seniors requiring state-provided care. James revealed that program funding had already been suspended in certain states prior to the deadline, citing instances like Head Start in Michigan and child development block grants in Maryland being frozen. Additionally, at least 20 states, including New York, had encountered disruptions in their Medicaid reimbursement systems.California Attorney General Rob Banta expressed concerns that the freeze would jeopardize FEMA disaster relief funding for wildfire victims in his state, stating it had 'thrown state programs into chaos and created confusion among our residents.' A separate lawsuit filed by the National Council of Nonprofits, the American Public Health Association, the Main Street Alliance, and SAGE argued that the freeze order lacked any legal basis and would inflict harm on hundreds of thousands of grant recipients who depend on federal funding. The lawsuit, submitted hours before the freeze's implementation, asserted that the order was unlawful and detrimental to the well-being of countless individuals and organizations.
Trump Administration Federal Funding Freeze Lawsuit Grants Loans State Attorneys General Nonprofits
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