Judge Pauses Trump’s Plan To Freeze Federal Aid Spending

Topline

A U.S. district judge temporarily blocked President Donald Trump’s freeze on federal grants and loans that caused nonprofits and Democratic attorneys general to sue his administration Tuesday.

Key Facts

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Crucial Quote

“It seems like the federal government currently doesn’t actually know the full extent of the programs that are going to be subject to the pause,” AliKhan said in the judgment to pause the freeze, the Associated Press reported.

Key Background

Trump’s freeze in federal loans and grants was almost immediately challenged in court, with a number of nonprofits and Democratic state attorneys general filing lawsuits against the administration Tuesday. The memo asked agencies to examine which programs conflict with Trump’s recent executive orders to stop spending that could be considered “financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.” The National Council of Nonprofits, along with others, argued the guidance to pause disbursement of funding would have a “devastating impact” on nonprofits that receive government grants and depend on federal funds “to fulfill their missions, pay their employees, pay their rent—and, indeed, improve the day-to-day lives of the many people they work so hard to serve.” The plaintiffs also argued the guidance violated the Administrative Procedure Act, was “arbitrary and capricious” and exceeded the agency’s authority.

Contra

Trump’s press secretary Karoline Leavitt said in her first media briefing Tuesday there was “no uncertainty in this building” about what the freeze applied to—despite the memo causing confusion among a number of agencies and advocacy organizations that reported problems accessing funds, ABC News reported. Leavitt added “it is the responsibility of this president and this administration to be good stewards of taxpayer dollars” and said “Social Security benefits, Medicare benefits, food stamps, welfare benefits, assistance that is going directly to individuals will not be impacted by this pause.”

Big Number

More than $3 trillion. That’s how much acting OMB Director Matthew Vaeth said in Monday’s memo the federal government spent on federal financial assistance like grants and loans last fiscal year.

Further Reading

States And Nonprofits Suing Trump Over ‘Catastrophic’ Pause In Federal Funding: ‘Immediate Nationwide Harm’ (Forbes)

Chaos ripples through country as Trump orders federal funding freeze (Associated Press)

Trump Pauses Federal Grants Starting Today—But Details Are Scarce. Here’s What We Know. (Forbes)