U.S. District Judge Lauren Ali Khan has temporarily blocked President Donald Trump’s order to freeze hundreds of billions of dollars in federal grants and loans before it goes into effect. The order will remain in effect until Monday.
Earlier, a group of grantees sued, claiming that the White House had violated the law by temporarily suspending funds that had already been approved.
The acting head of the White House budget office has instructed agencies to temporarily suspend all disbursements of federal financial aid or related activities. They took the step to review the new administration’s focus on grants and loans.
White House press secretary Carolyn Leavitt told reporters that the funding freeze would help ensure “good stewardship of tax dollars.” She added that it would allow the government to reduce spending on programs that address gender issues or diversity. However, the decision has caused confusion and anger among many, especially nonprofits and research organizations that receive such funds.
Judge Ali Khan issued a stay on Tuesday and a hearing will be held on Monday. The order will affect billions of dollars in federal programs, including disaster relief and cancer research.
Diane Yentel, president of the National Council of Nonprofits, said she was pleased with the court’s order, which has blocked the federal funding freeze. She said Trump’s order was unconstitutional and would affect the entire United States.
A coalition of Democratic states has also filed a separate lawsuit, arguing that Trump’s order is unconstitutional.
White House Deputy Chief of Staff Stephen Miller told reporters that the president’s order would allow the government to “control the credit.” He added that it would not affect any federal programs, and that there would be no changes to the food assistance program.
When the issue of state health insurance programs came up, the White House said that the program would not be affected and that the issue would be resolved quickly. It also confirmed that the Social Security program would not be affected. Senate Democratic leader Chuck Schumer said the president’s action would create anarchy in the country.
