US judge temporarily blocks Donald Trump's order to pause federal grants and loans

A U.S. judge has temporarily blocked President Donald Trump's sweeping order to pause federal grants and loans. This comes after the White House announced the suspension of federal grants and loans while the administration conducts a broad ideological review to purge progressive initiatives. U.S. District Judge Loren AliKhan's order was issued just minutes before the funding freeze was scheduled to take effect.

The order is valid until Monday afternoon local time and applies only to existing programs. Government officials stated that the decision to pause loans and grants—a financial lifeline for local governments, schools, and non-profits nationwide—was necessary to ensure spending aligns with Trump's recently issued executive orders. The Republican president seeks to increase fossil fuel production, eliminate protections for transgender people, and end diversity, equity, and inclusion efforts.

A vaguely worded memo from the Office of Management and Budget, coupled with incomplete answers from the White House throughout the day, left politicians, public officials, and ordinary Americans struggling to understand which programs would be affected by the pause. Even a temporary disruption in funding could lead to layoffs or delays in public services. David Smith, a spokesperson for the Shawnee Mission School District in Kansas, stated that the order was "a bit out of the blue." The school district is one of countless schools that receive federal funding. Smith said it is now trying to figure out what this means with "zero information" to go on.

Judge AliKhan, appointed by former U.S. President Joe Biden, stated when halting the freeze, "It does not appear that the federal government really understands at this point the full scope of the programs that are going to be paused." Jessica Morton, a lawyer representing the National Council of Nonprofits, which filed the lawsuit, said that the organization has tens of thousands of members across the country who could be affected. "Our client members have said they are very concerned that they will have to shut down, even if it is just a brief pause," Ms. Morton said. Justice Department lawyer Daniel Schwei stated that the plaintiffs had not specifically identified who would immediately lose funding if the pause went into effect.

Just minutes after Judge AliKhan's ruling, Democratic attorneys general from 22 states and the District of Columbia also filed their own lawsuit, seeking to block and permanently stop the administration from cutting off federal funding. "There is no question that this policy is reckless, dangerous, unlawful and unconstitutional," said New York Attorney General Letitia James. The Trump administration stated that Medicaid is not affected by the pause. Trump administration officials said that programs providing direct assistance to Americans, such as Medicare, Medicaid, Social Security, student loans, and food stamps, would not be affected. They also defended the funding pause, saying Trump was delivering on his promise to upend Washington if re-elected.

Organizations such as "Meals on Wheels," which receive federal funds to deliver meals to the elderly, also fear being cut off. "The lack of clarity and uncertainty right now is creating chaos," said spokeswoman Jenny Young. She added, "Seniors could panic, not knowing where their next meal is coming from." The National Science Foundation postponed its grant application review panel meetings this week. Republican leaders in Louisiana said they were "seeking clarity" to ensure that nothing "jeopardizes the state's fiscal stability." Washington State Senator Patty Murray said Trump's actions would "wreak havoc in red and blue communities across the country." She said, "We're talking about our small towns, our cities, our school districts."

The full scope of the administration’s review is detailed in a 51-page spreadsheet sent to federal agencies and seen by the Associated Press. Each line is a different government initiative, from swimming pool safety to tribal workforce development to special education. Officials were asked to answer a series of yes or no questions for each item on the list, including, "Does this program promote gender ideology?" or "Does this program in any way promote or support abortion?" The deadline for responses is February 7. Trillions of dollars in funding could be under review. Grants that have already been awarded but not yet spent should also be paused if they might violate 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 money and does nothing to improve the daily lives of the people we serve," said Matthew Vasse, acting director of the Office of Management and Budget, in a memo released Monday.

The funding pause is the latest example of how Trump is using his power over the federal system to advance his conservative goals. For example, federal employees are being asked to report colleagues who try to continue diversity, equity, and inclusion initiatives.