Trump's funding freeze temporarily halted by federal judge
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A federal judge on Tuesday temporarily halted President Trump's effort to temporarily pause federal grant, loan and financial assistance programs.
The big picture: U.S. District Judge Loren L. AliKhan blocked Trump's order minutes before it was to take effect, with an administrative stay that expires Monday.
- AliKhan in her order wrote she was issuing a preliminary injunction in order to "preserve the status quo while the court considers the merits of the case."
Zoom in: The judge's order is in response to a complaint filed earlier Tuesday by the National Council of Nonprofits, the American Public Health Association, the Main Street Alliance and SAGE.
- They argued the funding freeze targets grant recipients based on their opinions on issues like climate change or diversity, equity and inclusion.
- Trump's memo "will have a devastating impact on hundreds of thousands of grant recipients who depend on the inflow of grant money," the complaint said.
Zoom out: Democratic attorney generals and members of Congress also said they plan to sue over the freeze.
Context: The Office of Management and Budget sent a memo to federal agencies Monday night directing them to "temporarily pause all activities related to obligation or disbursement of all Federal financial assistance."
- The memo created confusion among federal agencies and state governments, and some states reportedly lost access to a portal used to manage Medicaid spending.
- The White House said in a follow-up memo Tuesday, that "the pause does not apply across-the-board" and is "expressly limited" to funding areas like DEI targeted by Trump's executive orders.
Editor's note: This article has been updated with new details throughout.
