Daijiworld Media Network - Washington
Washington, Jan 29: A US judge has temporarily blocked President Donald Trump’s order to freeze hundreds of billions of dollars in federal grants and loans, just moments before it was set to take effect on Tuesday.
Judge Loren AliKhan issued a stay until next Monday at 17:00 EST (22:00 GMT), following a lawsuit filed by organisations representing grant recipients. The lawsuit argued that the White House’s move to suspend already approved funding was unlawful and could have widespread consequences.
The directive, issued by the White House budget office, had instructed federal agencies to temporarily pause all financial assistance disbursements to allow the administration to reassess funding in line with its policies. White House press secretary Karoline Leavitt defended the move, stating that it aimed at ensuring responsible use of taxpayer money and curbing expenditures on diversity and gender-related programmes.
However, the order sparked confusion and concern, particularly among research institutions and non-profits relying on federal grants. Critics warned that the freeze could impact crucial federal initiatives, including disaster relief and cancer research.
Judge AliKhan said her decision to block the freeze was meant to maintain the status quo until a hearing could be held on Monday. In response, Diane Yentel, president of the National council of nonprofits, celebrated the ruling, calling the White House’s plan "reckless."
Meanwhile, Democratic leaders strongly opposed the order, with senate minority leader Chuck Schumer warning of economic disruption and missed payrolls. Top Democrats, including senator patty Murray and congresswoman Rosa DeLauro, expressed deep concerns, terming the decision "breathtaking and unprecedented."
White House officials, including deputy chief of staff Stephen Miller, insisted the freeze was a routine measure for financial control and would not affect essential services like social security, Medicaid, or food assistance programmes.
The legal battle is set to unfold in court next week, while a coalition of democratic states has filed a separate lawsuit, challenging the order’s constitutionality.