Federal judge temporarily blocks Trump administration freeze on federal grants and loans

President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Md., Monday, Jan. 27, 2025. (AP Photo/Mark Schiefelbein)

A federal judge has temporarily blocked a push from President Donald Trump to pause federal funding while his administration conducts an across-the-board ideological review of progressive initiatives.

The order from U.S. District Judge Loren L. AliKhan came minutes before the funding freeze was scheduled to go into effect. It lasts until Monday afternoon and applies only to existing programs.

Administration officials said the decision to halt loans and grants  was necessary to ensure that spending complies with Trump’s recent blitz of executive orders. The president wants to increase fossil fuel production, remove protections for transgender people and end diversity, equity and inclusion (DEI) efforts.

But a vaguely worded memo issued by the Office of Management and Budget, combined with incomplete answers from the White House throughout the day, left lawmakers, public officials and average Americans struggling to figure out what programs would be affected by the pause.

Even temporary interruptions in funding could cause layoffs or delays in public services.

“This sort of came out of the blue,” said David Smith, a spokesperson for the Shawnee Mission School District in Kansas, one of countless districts that receive federal funding. Now they’re trying to figure out what it means “based on zero information.”

Trump administration officials said programs that provide direct assistance to Americans would not be affected, such as Medicare, Medicaid, Social Security, student loans and food stamps. They also defended the funding pause, saying Trump was following through on his promise to turn Washington upside down if elected to a second term.

However, the effects were being felt far from the nation’s capital. Organizations like Meals on Wheels, which receives federal money to deliver food to the elderly, were worried about getting cut off.

“The lack of clarity and uncertainty right now is creating chaos,” spokeswoman Jenny Young said. She added that “seniors may panic not knowing where their next meals will come from.”

The National Science Foundation postponed this week’s panels for reviewing grant applications. Officials in Prichard, Alabama, feared they wouldn’t receive infrastructure funding to fix their leaking drinking water system. Republican leaders in Louisiana said they were “seeking clarity” to ensure nothing was “jeopardizing financial stability of the state.”

The full scope of the administration’s review was spelled out in a 51-page spreadsheet sent to federal agencies and viewed by The Associated Press. Each line was a different government initiative, from pool safety to tribal workforce development to special education.

Officials were directed to answer a series of yes or no questions for every item on the list, including “does this program promote gender ideology?” or “does this program promote or support in any way abortion?” Responses are due by Feb. 7.

Trillions of dollars are potentially under review. Grants that have been awarded but not spent are also supposed to be halted if they might violate one of Trump’s executive orders.

“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” wrote Matthew Vaeth, the acting director of the Office of Management and Budget, in a memo distributed Monday.

Vaeth wrote that “each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders.” He also wrote that the pause should be implemented “to the extent permissible under applicable law.”

Democrats described the Trump administration’s decision as capricious and illegal. They argued that the president had no right to unilaterally stop spending money appropriated by Congress.

New York Attorney General Letitia James planned to ask a Manhattan federal court to block the funding pause.

“There is no question this policy is reckless, dangerous, illegal and unconstitutional,” she said.

Separately, a group of nonprofit organizations filed a lawsuit in Washington saying that the funding pause is “devoid of any legal basis or the barest rationale.”

The issue dominated the first briefing held by White House press secretary Karoline Leavitt. She said the administration was trying to be “good stewards” of public money by making sure that there was “no more funding for transgenderism and wokeness.”

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