Posted on 01/28/25
| News Source: The Hill
A federal judge temporarily blocked President Trump’s plan to freeze federal aid minutes before it was set to go into effect late Tuesday afternoon.
U.S. District Judge Loren AliKhan said she was granting a “brief administrative stay” that preserves federal disbursements at least until Monday after a group of nonprofit and public health organizations filed a lawsuit.
AliKhan, an appointee of former President Biden who was randomly assigned to the case, issued the order at the conclusion of a hastily scheduled video conference Tuesday that began just an hour before the freeze.
Trump’s move was announced in a Monday night memo issued by Matthew Vaeth, acting director of the Office of Management and Budget (OMB). It directs federal agencies to temporarily pause “all activities related to obligation or disbursement of all Federal financial assistance” while the government conducts a review to ensure spending aligns with Trump’s agenda.
The administration defended the plan Tuesday and stressed its limitations, insisting the plan doesn’t apply across the board and won’t affect Social Security and other direct payments to individuals.
In court filings, the Justice Department emphasized those limitations as reason to deny the nonprofits’ request for an immediate injunction. The groups hadn’t identified any imminent grant disbursements they would miss if Trump’s plan takes effect, the government added.