A federal judge has temporarily halted the Trump administration’s sweeping freeze on federal grants and loans, an action that could affect trillions of dollars in funding. U.S. District Judge Loren L. AliKhan issued the administrative stay Tuesday afternoon, just minutes before the freeze was set to take effect. The decision pauses the funding freeze until Monday, giving time for further legal review.
The White House had planned the freeze as part of an across-the-board ideological review of federal spending, aimed at aligning government funding with Trump’s executive orders. The orders focus on increasing fossil fuel production, rolling back protections for transgender individuals, and ending diversity, equity, and inclusion (DEI) programs.
The announcement of the freeze caused widespread panic and confusion among local governments, schools, and nonprofit organizations that depend on federal funding as a financial lifeline. Administration officials had assured the public that assistance programs for individuals—such as Social Security, Medicare, food stamps, student loans, and scholarships—would not be impacted.
The pause comes amid growing concerns about the legality and scope of the freeze, setting the stage for a constitutional clash over the control of taxpayer money. Organizations and advocacy groups have already begun challenging the freeze in court, arguing it would destabilize critical services nationwide.
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