A judge temporarily blocked Trump’s order to freeze federal funding on public loans and grants.
Judge Loren AliKhan, a Biden appointee, granted a temporary stay on Trump’s plan to freeze federal funding.
On Monday, Trump’s Office of Management and Budget (OMB) put a temporary pause of agency grant, loan and other financial assistance programs.
“The American people elected Donald J. Trump to be President of the United States and gave him a mandate to increase the impact of every federal taxpayer dollar. In Fiscal Year 2024,of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans,” the OMB said.
“This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements,” the OMB memo said.
This temporary pause will provide the Administration time to review agency programsand determine the best uses of the funding for those programs consistent with the law and thePresident’s priorities. The temporary pause will become effective on January 28, 2025, at 5:00PM. Even before completing their comprehensive analysis, Federal agencies must immediatelyidentify any legally mandated actions or deadlines for assistance programs arising while thepause remains in effect. Federal agencies must report this information to OMB along with ananalysis of the requirement. OMB also directs Federal agencies to pause all activities associated with open NOFOs, such as conducting merit review panels,” the OMB added.
The judge temporarily paused Trump’s freeze until next Monday.
NBC News reported:
A federal district judge on Tuesday granted an administrative stay in a case challenging the Trump administration’s planned freeze of federal aid, pausing the plan for a week and setting a hearing for further arguments next Monday morning.
The order only applies to the pause of disbursements in open grants, Judge Loren AliKhan said. And it doesn’t get into the legality of the freeze, instead just giving the court more time for briefings.
The freeze was scheduled to begin Tuesday at 5 p.m.
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