Federal judge temporarily blocks Donald Trump administration freeze on federal grants and loans

Justice Department attorney Daniel Schwei argued that the freeze shouldn’t be put on hold because the plaintiffs hadn’t specified anyone who would immediately lose funding if it does go into effect.

Trump administration officials said programs that provide direct assistance to Americans would not be affected, such as Medicare, Social Security, student loans and food stamps. But they sometimes struggled to provide a clear picture.

White House press secretary Karoline Leavitt initially would not say whether Medicaid was exempted from the freeze, but the administration later clarified that it was.

Although Trump had promised to turn Washington upside down if elected to a second term, the effects of his effort to pause funding were being felt far from the nation’s capital. Organizations like Meals on Wheels, which receives federal money to deliver food to the elderly, were worried about getting cut off.

“The lack of clarity and uncertainty right now is creating chaos,” spokeswoman Jenny Young said. She added that “seniors may panic not knowing where their next meals will come from.”

The National Science Foundation postponed this week’s panels for reviewing grant applications. Officials in Prichard, Alabama, feared they wouldn’t receive infrastructure funding to fix their leaking drinking water system. Republican leaders in Louisiana said they were “seeking clarity” to ensure nothing was “jeopardizing financial stability of the state.”

“Trump’s actions would wreak havoc in red and blue communities everywhere,” said Sen. Patty Murray of Washington, the top Democrat on the Senate Appropriations Committee. “We are talking about our small towns, our cities, our school districts.”

The full scope of the administration’s review was spelled out in a 51-page spreadsheet sent to federal agencies and viewed by The Associated Press. Each line was a different government initiative, from pool safety to tribal workforce development to special education.

Officials were directed to answer a series of yes or no questions for every item on the list, including “does this program promote gender ideology?” or “does this program promote or support in any way abortion?” Responses are due by Feb. 7.

Trillions of dollars are potentially under review. Grants that have been awarded but not spent are also supposed to be halted if they might violate one of Trump’s executive orders.

“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” wrote Matthew Vaeth, the acting director of the Office of Management and Budget, in a memo distributed Monday.

Vaeth wrote that “each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders.” He also wrote that the pause should be implemented “to the extent permissible under applicable law.”

The pause on grants and loans was scheduled to take effect at 5 p.m. EST, just one day after agencies were informed of the decision.

Leavitt, who held her first White House briefing on Tuesday, said the administration was trying to be “good stewards” of public money by making sure that there was “no more funding for transgenderism and wokeness.”

She denied that Trump was deliberately challenging Congress to establish his dominance over the federal budget.

“He’s just trying to ensure that the tax money going out the door in this very bankrupt city actually aligns with the will and the priorities of the American people,” she said.

The attempt to implement a funding pause is the latest example of how Trump is harnessing his power over the federal system to advance his conservative goals. Unlike during his first term, when Trump and many members of his inner circle were unfamiliar with Washington, this time he’s reaching deep into the bureaucracy.

For example, federal employees are being asked to report their colleagues if they try to continue diversity, equity and inclusion initiatives.

“They are pushing the president’s agenda from the bottom up,” said Paul Light, an expert on the federal government and professor emeritus of public service at New York University.

He also said there are risks in Trump’s approach, especially with so many voters reliant on Washington.

“You can’t just hassle, hassle, hassle,” Light said. “You’ve got to deliver.”

Fears about interruption in government services were exacerbated as states reported problems with the Medicaid funding portal, where officials request reimbursement for providing healthcare to poor residents.

Democrats condemned the Trump administration, connecting the issue to the funding pause.

But Leavitt said the portal would be back online soon.

“We have confirmed no payments have been affected — they are still being processed and sent,” she posted on social media. The White House did not provide an explanation for the problem.

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