Federal Judge Halts Trump's Freeze on Grants and Loans Amid Controversy

Mon Mar 10 2025 16:06:39 GMT+0200 (Eastern European Standard Time)
Federal Judge Halts Trump's Freeze on Grants and Loans Amid Controversy

A temporary ruling blocks the implementation of Trump's funding freeze just minutes before it was set to take effect.


A federal judge intervened on Tuesday to prevent President Donald Trump's order to freeze federal grants and loans, which was originally slated to begin at the stroke of midnight. Judge Loren AliKhan's ruling came in response to a lawsuit from various organizations representing affected grant recipients. The lawsuit contends that the White House's abrupt freeze of already approved funding is unlawful.

The order brought about significant confusion prior to its scheduled effect, as agencies scrambled to comprehend which programs would be affected. The White House budget office had instructed agencies to pause all activities connected to federal financial assistance, aiming to give the new administration a chance to evaluate which grants and loans aligned with its mission. White House Press Secretary Karoline Leavitt noted that the pause was intended to ensure responsible management of taxpayer dollars, particularly in cutting expenditures linked to what she termed "woke" issues surrounding gender and diversity.

However, individuals and organizations that rely on federal funding, such as nonprofits and research institutions, expressed outrage over the potential loss of crucial financial support. Judge AliKhan issued a stay to maintain the current funding landscape until an oral argument scheduled for Monday.

The White House directive was likely to impact billions designated for a range of federal programs, raising alarm among different sectors reliant on such funds, including disaster relief and public health research. Diane Yentel, president of the National Council of Nonprofits, celebrated the ruling on social media, highlighting its importance in safeguarding federal grant programs that she argued were under threat.

Critics of Trump's order, including coalitions of Democratic states, believe the action undermines the legality and purpose of federal funding processes. The democratic leadership expressed heightened concern, labeling the freeze as unprecedented and potentially disastrous for public services. Reports surfaced that several states faced challenges accessing funds through Medicaid, prompting fears of disruption, although the White House assured that immediate resolution would follow.

The controversy encapsulates a broader debate over government funding priorities amidst shifting political landscapes, with stakeholders concerned about the far-reaching implications of such executive orders.

US government | Donald Trump | United States

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