US Judge Halts Trump's Funding Freeze Amid Controversy Over Federal Grants

Thu Mar 13 2025 06:43:10 GMT+0200 (Eastern European Standard Time)
US Judge Halts Trump's Funding Freeze Amid Controversy Over Federal Grants

A US judge has temporarily blocked President Trump's freeze on federal grants and loans, citing legal concerns raised by various organizations, just hours before it was set to take effect.


In a significant legal development, Judge Loren AliKhan issued a temporary injunction against President Trump's controversial directive to freeze hundreds of billions in federal funding ahead of its implementation on Tuesday. The ruling was in response to a lawsuit launched by organizations that depend on federal grants. They contended that Trump's freeze violated legal norms by disrupting already approved financial assistance.

As the clock ticked down to the freeze, anxiety gripped various sectors, with uncertainty surrounding which federal agencies and programs would be affected. The acting head of the White House budget office had mandated a "temporary pause" on federal financial assistance to allow the incoming administration to evaluate which grants aligned with its priorities. This move was framed by White House Press Secretary Karoline Leavitt as a way to ensure fiscal responsibility and curtail "woke" initiatives related to diversity and gender issues. However, the announcement ignited confusion and backlash among organizations reliant on such funding, who faced the prospect of losing essential financial support.

In her decision, Judge AliKhan emphasized the importance of maintaining the "status quo" until a hearing scheduled for Monday morning could take place. The freeze was poised to impact substantial funding programs, ranging from disaster relief to medical research—including cancer studies. Following the ruling, Diane Yentel, president of the National Council of Nonprofits, praised the court's decision on social media, celebrating the preservation of funding amidst fears of a sweeping halt to grant programs.

The White House continues to defend Trump's initiative, arguing it holds the potential for "credit control" and would not impact essential government services like Social Security or food assistance programs, despite some preliminary reports of disruptions. A coalition of Democratic states has also joined the fray, arguing the freeze is unconstitutional and ought to be permanently blocked.

Democrats have raised concerns about the sweeping implications of the funding freeze, warning that it could lead to missed payrolls and wider economic chaos. High-ranking officials, including Senator Patty Murray and Congresswoman Rosa DeLauro, expressed alarm in a letter to the White House, suggesting the measures could result in devastating outcomes nationwide. Senate Minority Leader Chuck Schumer echoed these sentiments, citing the potential for serious financial repercussions across multiple states.

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