A federal judge has temporarily blocked President Donald Trump’s directive to freeze federal grants and loans
A federal judge has temporarily blocked President Donald Trump’s directive to freeze federal grants and loans, just before it was set to take effect. Judge Loren AliKhan issued the order on January 28, 2025, delaying implementation until the following Monday at 5 PM EST, in response to a lawsuit filed by various organizations representing grant recipients. The lawsuit argues that the freeze violates legal standards regarding previously approved funding.
The directive from the White House’s Office of Management and Budget aimed to suspend all actions related to federal financial assistance, which could have impacted billions of dollars allocated for essential programs, including disaster recovery and healthcare research. The judge’s ruling maintains the status quo until further hearings can be conducted.
The memo initiating the freeze suggested that it was part of a broader ideological review of federal spending, targeting programs associated with diversity, equity, and inclusion (DEI) initiatives, as well as environmental policies. However, it clarified that benefits like Medicare and Social Security would remain unaffected. Critics, including Democratic lawmakers, have expressed concerns that this freeze could disrupt vital services across the country.
