Trump signs Executive Order/ screen image: CSPAN
A federal judge on Friday temporarily blocked President Trump’s order to freeze federal funding to 22 states on public loans and grants.
On Monday, Trump’s Office of Management and Budget (OMB) put a temporary pause of agency grant, loan and other financial assistance programs.
“The American people elected Donald J. Trump to be President of the United States and gave him a mandate to increase the impact of every federal taxpayer dollar. In Fiscal Year 2024,of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans,” the OMB said.
“This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements,” the OMB memo said.
This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities. The temporary pause will become effective on January 28, 2025, at 5:00 PM. Even before completing their comprehensive analysis, Federal agencies must immediately identify any legally mandated actions or deadlines for assistance programs arising while the pause remains in effect. Federal agencies must report this information to OMB along with ananalysis of the requirement. OMB also directs Federal agencies to pause all activities associated with open NOFOs, such as conducting merit review panels,” the OMB added.
US District Judge of the District Court for the District of Rhode Island, John McConnell, an Obama appointee, temporarily blocked Trump’s freeze on federal in response to a request from 22 Democrat state attorneys general and DC.
Reuters reported:
A federal judge on Friday temporarily blocked U.S. President Donald Trump’s administration from freezing federal loans, grants and other financial assistance to 22 states, barring the Republican for now from implementing a policy that had stoked confusion and fears about critical government-funded services being disrupted.
The ruling by U.S. District Judge John McConnell in Providence, Rhode Island came at the behest of Democratic attorneys generals from 22 states and the District of Columbia and despite the White House saying it was rescinding Monday’s memo from its budget office detailing the policy.
The temporary restraining order will be in place until further order of the court while the judge considers whether to issue a longer preliminary injunction.
Earlier this week Judge Loren AliKhan, a Biden appointee, granted a temporary stay on Trump’s plan to freeze federal funding.
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