Judge Temporarily Halts Trump’s Plan to Freeze Federal Funding
A US judge has temporarily halted President Donald Trump’s order to freeze hundreds of billions of dollars in federal grants and loans, just minutes before it was set to come into effect on Tuesday. Judge Loren AliKhan issued the order until next Monday at 17:00 EST (22:00 GMT) in response to a lawsuit filed earlier in the day by a group of organizations representing grant recipients.
Lawsuit Claims Order Violates Law
The lawsuit alleges that the White House’s plan to freeze already approved funding violates the law. In the hours before the order was due to take effect, there was widespread confusion about which agencies and programs would be impacted.
“Good Stewards of Tax Dollars”
The White House stated that the move was intended to give the new administration time to assess grants and loans in line with their agenda. White House Press Secretary Karoline Leavitt defended the plan, saying it was about being “good stewards of tax dollars.” Speaking to reporters in her first ever briefing, she stated that the pause in funding would allow governments to cut back spending on “woke” gender issues and diversity programs.
Confusion and Anger from Opposition
However, the move prompted confusion, as well as anger from opposition figures, on Tuesday as those who receive federal loans and grants, such as nonprofits and research organizations, grappled with the reality of swiftly losing funding.
Getty ImagesRipple Effects and Challenges with Accessing Funds
The National Council of Nonprofits argued that Trump’s order is “devoid of any legal basis or the barest rationale” and will have ripple effects throughout the United States and beyond. This lawsuit comes separately from an action by a coalition of Democratic states who filed a lawsuit to block the order, calling it unconstitutional.
On Tuesday, several states reported issues accessing funds through Medicaid, a government health insurance program for low-income people. The White House later assured that Medicaid would not be affected and that the issue with accessing funds would be resolved soon.
Additional Program Clarifications
The White House also clarified that Social Security benefits and any programs providing direct benefits to individuals, including the Supplemental Nutrition Assistance Program (SNAP), would not be affected.
Concerns Raised by Democratic Leaders
In a letter to the White House, top Democrats expressed “extreme alarm” about the plan. Washington Senator Patty Murray and Connecticut Congresswoman Rosa DeLauro wrote, “The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country.”
Democratic minority leader of the US Senate, Chuck Schumer, called the move a cause for “chaos,” stating it would result in missed payrolls and rent payments.
Stay Informed
This situation is developing. Stay informed about the latest updates on this story and the impact of federal funding decisions on government programs and individual beneficiaries.
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