President Trump issued an order to temporarily halt all federal grants and loans, a move that could significantly impact trillions of dollars in funding and disrupt vital public programs. A federal judge temporarily blocked the directive, pending further legal action.
President Donald Trump issued a directive on Monday 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. The suspension was to begin on January 28 at 5 p.m. EST, but U.S. District Judge Loren L. AliKhan blocked the action Tuesday afternoon, minutes before it was set to go into effect. His administrative stay pauses the freeze until Monday.
\The initial memo, written by Matthew J. Vaeth, the acting director of the Office of Management and Budget, said federal agencies must temporarily pause all activities related to the 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 complies with Trump's executive orders. 'This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President's priorities,' Vaeth continued. He also said using federal resources to advance 'Marxist equity, transgenderism, and Green New Deal social engineering policies is a waste of taxpayer dollars' and 'does not improve the day-to-day lives of those we serve.'\During a White House press briefing, press secretary Karoline Leavitt addressed the pause. 'It means no more funding for illegal DEI programs. It means no more funding for the Green New Deal scam that has cost American taxpayers tens of billions of dollars. It means no more funding for transgenderism and wokeness across our federal bureaucracy and agencies. No more funding for Green New Deal social engineering policies,' she said. According to the memo, FAFSA and other student loans will not be directly affected by the directive, as the memo specifies that the pause does not affect 'assistance provided directly to individuals.' This means federal assistance to individuals will not be affected, including Social Security, Medicare, food stamps, welfare benefits, 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 sweeping scope of the federal funding freeze has raised concerns about possible disruptions to educational funding, with education programs potentially being impacted. It's not clear what will happen if and when the judge's temporary stay is lifted next week. \ FederalStudentAid.gov states: The Free Application for Federal Student Aid (FAFSA) is a form that students can use to apply for financial aid for college, career school, or graduate school. FAFSA is free to complete and submit. The suspension specifically targets financial assistance related to financial assistance for foreign aid, nongovernmental organizations, diversity and equity and the Green New Deal. Due to the memo’s broad nature, it’s still unclear exactly what will be directly impacted, but educational programs, health care research and disaster assistance could potentially be affected. Washington is a hub of spending that flows to various departments, local governments, nonprofits and contractors, and the memo has left countless people who are dependent on that money wondering how they will be affected. The new directive has the potential to impact billions in funding allocated to state and local governments. Federal funds support a wide range of initiatives, from research projects to education grants to housing assistance. Even grants that have been awarded but not spent are supposed to be halted. \U.S. Senator Ron Wyden and other state officials claimed on Tuesday that Medicaid portals were down in the U.S., following Trump’s pause on federal funding. 'My staff has confirmed reports that Medicaid portals are down in all 50 states following last night's federal funding freeze,' the senator from Oregon said on the social media platform X on Tuesday. 'This is a blatant attempt to rip away health insurance from millions of Americans overnight and will get people killed.' Court battles are imminent, and Democratic New York Attorney General Letitia James said she planned to ask a Manhattan federal court to block the Republican president's moves. 'My office will be taking imminent legal action against this administration’s unconstitutional pause on federal funding,' she said on social media. Senate Minority Leader Chuck Schumer, a Democrat from New York, called it 'more lawlessness and chaos in America.' 'The scope of this illegal action is unprecedented and could have devastating consequences across the country,' said Sen.
FEDERAL FUNDING DONALD TRUMP LEGAL ACTION GRANTS LOANS PUBLIC PROGRAMS
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Medicaid access paused by federal funding freeze, states sayPresident Donald Trump issued a directive on Monday to temporarily suspend all federal grants and loans.
Read more »
Trump Issues Executive Order to Suspend TikTok Ban EnforcementPresident Trump has issued an executive order instructing the Department of Justice not to enforce a rule requiring TikTok to divest from its Chinese parent company, ByteDance, or face a ban. This move effectively extends the deadline set by the Protecting Americans from Foreign Adversary Controlled Applications Act and aims to shield American companies like Apple and Google from penalties for working with TikTok.
Read more »
Biden Issues Sweeping Cybersecurity Directive in Final Days of PresidencyPresident Biden signs a wide-ranging cybersecurity order focused on strengthening government defenses against cyber threats, utilizing AI, implementing digital identities, and addressing vulnerabilities exploited by adversaries. The order mandates software security practices, centralized threat monitoring, and AI-driven cyber defense initiatives.
Read more »
Trump Revokes Environmental Justice Directive, Threatening Health of MillionsPresident Trump has revoked a 1994 directive that required federal agencies to protect minority and low-income communities from pollution and health hazards. Civil rights advocates and experts warn that this move will disproportionately harm these communities, which have often been subjected to environmental injustice.
Read more »
Trump directive will keep promise made to Lumbee TribeFull federal recognition for the Lumbees, the largest tribe east of the Mississippi River, is on the way from second-term Republican President Donald Trump.
Read more »
U.S. Freezes Almost All Foreign Aid, Exceeding Trump's Initial DirectiveThe State Department has reportedly frozen nearly all U.S. foreign assistance, exceeding a previous order by President Trump. The freeze, according to a leaked cable, exempts only emergency food aid and foreign military financing for Israel and Egypt. This move has sparked concern among humanitarian officials and foreign policy experts, as it potentially impacts crucial aid programs globally.
Read more »