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Judge temporarily blocks part of Trump administration’s plans to freeze federal aid

A judge has temporarily halted part of the Trump administration's plan to freeze federal aid, impacting funding allocations.

Judge temporarily blocks part of Trump administration’s plans to freeze federal aid

A federal judge temporarily blocked part of the Trump administration’s plan to freeze all federal aid, which caused confusion and concern among charities and educators. The short-term pause, issued by U.S. District Judge Loren L. AliKhan, halts the freeze on funding for already granted federal awards until at least 5 p.m. ET on Monday, February 3.

This administrative stay was put in place while the judge considers a legal challenge brought by a group of non-profits against the White House’s policy. AliKhan raised concerns about the government’s lack of clarity on which programs would be impacted by the freeze. She is expected to rule on a longer-term pause early next week.

The freeze was ordered by the White House Office of Management and Budget (OMB) via an internal memo sent on Monday, affecting all federal grants and loans. Agencies were instructed to pause all activities related to the distribution of federal financial assistance. However, the memo clarified that Social Security, Medicare, and assistance directly provided to individuals would not be affected.

The announcement led to significant concern from organizations dependent on federal funding, though the White House sought to reassure the public. Press Secretary Karoline Leavitt emphasized that the pause was focused on Democratic priorities rather than an all-encompassing cut to programs. She also stated that agencies could appeal to the administration to maintain funding if their programs aligned with the president’s agenda.

Despite these reassurances, the temporary freeze led to a disruption in Medicaid services, preventing state Medicaid agencies from accessing federal funds for several hours. By the afternoon, access was restored, but the interruption prompted criticism from Democratic lawmakers. Senator Ron Wyden of Oregon accused the Trump administration of attempting to strip health insurance from millions of Americans.

Alongside this, a lawsuit was filed by several non-profits, including the National Council of Nonprofits and the American Public Health Association. The lawsuit challenged the authority behind the funding freeze and sought a temporary restraining order to prevent its implementation.

The memo stated that the pause would also impact financial assistance related to foreign aid, non-governmental organizations, diversity, equity, and inclusion (DEI) initiatives, gender-related policies, and green energy projects. It also outlined the possibility for federal agencies to request exceptions, allowing them to issue new awards or proceed with certain activities on a case-by-case basis. Agencies were given until February 10 to report any programs affected by the pause.

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