US judge temporarily blocks Trump's freeze on federal grants, loans
What's the story
A United States federal judge has temporarily blocked the Trump administration's decision to freeze federal grants and loans.
The administrative stay, issued by US District Judge Loren L. AliKhan, came into effect just minutes before the funding pause was scheduled to begin.
The temporary halt will remain in place until Monday afternoon, with another court hearing set for that morning.
Executive compliance
Funding freeze aims to align with Trump's orders
The funding freeze was announced by President Donald Trump as a way to ensure compliance with his recent executive orders.
These orders mainly focus on boosting fossil fuel production and removing protections for transgender individuals.
However, a memo from the Office of Management and Budget (OMB) regarding the freeze was ambiguously worded, leading to uncertainty about which programs would be impacted.
Legal dispute
Democrats challenge funding freeze as illegal
Democrats have slammed Trump's move as illegal and unconstitutional, saying the president cannot unilaterally stop spending money allocated by Congress.
As a measure, Democratic attorneys general from 22 states and the District of Columbia have filed a lawsuit to permanently block the funding pause.
Nonprofit organizations dependent on federal funding have also raised concerns over the potential impact on essential services like childcare, education, and healthcare.
Funding clarification
Administration assures direct assistance programs won't be affected
The Trump administration has assured that direct assistance programs like Medicare and Social Security will not be impacted by the freeze.
However, White House press secretary Karoline Leavitt initially did not clarify whether Medicaid was excluded from the freeze, which the administration later confirmed, was included.
The administration's review was detailed in a 51-page document sent to federal agencies.
Widespread impact
Funding freeze raises concerns among various organizations
In light of the chaos, the National Science Foundation has postponed grant application reviews amid funding uncertainties.
Likewise, organizations such as Meals on Wheels are worried about possible service disruptions for vulnerable communities.
In related development, the Trump administration has offered a buyout offer to million federal employees.
The program, called the "deferred resignation program," allows these workers to remain on payroll until September 30 without having to work in person.
Employees have until February 6 to accept the offer.