A judge temporarily blocked President Donald Trump’s federal funding freeze just moments before it was set to go into effect on Tuesday, January 28.
U.S. District Judge Loren Ali Khan blocked the Trump administration’s pause on federal grants, loans, and other financial assistance which could have totalled trillions in funding.
The stunning move came after the White House spent most of the day attempting to clarify its spending freeze amid widespread confusion over which programs would be impacted.
The Trump announcement sent shockwaves through Washington after the White House budget office late Monday issued the sweeping order.
It would have halted taxpayer money from being doled out for initiatives in education and health care, housing assistance, disaster relief, and a host of other areas pending a review.
The administration argued the funding should be put on hold while officials ensured no publicly funded programs are ‘woke,’ and that all are in line with executive orders he signed last week abolishing the government’s DEI agenda.
The memo reiterated that the pause was not meant to target any ‘assistance provided directly to individuals,’ such as Medicare or Social Security.
But the move faced immediate backlash as it was not clear how the spending freeze would impact programs such as Medicaid, SNAP, and other government assistance.
It was estimated the pause would have frozen up to $3 trillion in federal grants and loans.
Democratic lawmakers on Capitol Hill on Tuesday blasted the president, calling the effort unconstitutional and an attempt to consolidate power.
They said they were already receiving calls from panicked constituents and businesses in their states on what the directive would mean for them.
Earlier Tuesday, the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE sued over the order.
At the hearing in Washington on Tuesday, AliKhan ordered the Trump administration not to block funds that were already slated to go out until at least February 3.
The judge said her ruling was intended to maintain status quo, but it would not stop the administration from pausing funding for new programs or restarting funds that had already ended.
The CEO of the National Council of Nonprofits, Diane Yentel, reacted to the ruling on X, posting ‘We did it (for now)!’
‘Our lawsuit was successful – the US district court is blocking OMB from moving forward on its reckless plan to halt federal funding,’ she continued but noted their fight was not over.
‘For now – thank you all for your support, partnership, and leadership. Take a breath, take a rest, and buckle up – we’re not done,’ Yentel wrote.
Another hearing is scheduled for Monday to determine next steps.