Federal Judge Blocks Trump’s Funding Pause With Just Minutes Until Deadline
The government lawyer defending the Office of Management and Budget order was unable to answer questions about exactly what programs would be affected, or when the funds would resume if the order was allowed to take effect.
A federal judge has blocked President Trump’s order to temporarily pause the disbursement of federal grants and assistance after an emergency court hearing on Tuesday afternoon. States and nonprofit organizations raised concerns that their funding for critical programs would be shut off after the White House released an order that did not clearly outline which programs would be halted.
Judge Loren AliKhan of the District of Columbia federal district court told lawyers she would temporarily block the move just four minutes before the funding halt order was due to be implemented.
“This was only announced through the press this morning,” the judge said, raising concerns that no one had specific examples about what programs would be halted or who exactly would be harmed by it.
The lawsuit was brought against the Office of Management and Budget, and its acting director Matthew Vaeth, by the National Council of Nonprofits on Tuesday morning. They alleged that the OMB order temporarily pausing “all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities” is a violation of federal law.
Judge AliKhan pressed the government’s lawyer on when the programs are due to be reinstated after the proposed pause, though he seemed to have few answers during questioning.
“I can only speak for myself. Based on the limited timeframe, I do not have a comprehensive list,” said the government’s lawyer, Daniel Schwei, who was charged with defending the OMB decision. “It depends on the particular grant or program.”
President Trump ordered the funds be halted in order to ensure that the disbursement of any more federal dollars was in line with his “executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
White House press secretary Karoline Leavitt defended the decision to halt the funding at her first briefing on Tuesday.
“The reason for this is to ensure that every penny going out the door is not conflicting with the executive orders and action that this president has taken,” Ms. Leavitt said. “This is a very responsible measure.”
She ensured Americans that things like Social Security checks and Medicare would not be impacted by the freeze. She also later clarified that Medicaid would be allowed to disperse after some states reported that they had lost access to their portals.
“We have confirmed no payments have been affected — they are still being processed and sent. We expect the portal will be back online shortly,” she said in a post on X.
Democrats lambasted the move after it was issued on Monday, calling it an illegal usurpation of congressional spending powers by the executive.
The top Democrats on both the Senate and House Appropriations Committees — Congresswoman Rosa DeLauro and Senator Murray — said in a letter to Mr. Vaeth that his actions were “breathtaking, unprecedented, and will have devastating consequences across the country.”
“This Administration’s actions will have far-reaching consequences for nearly all federal programs and activities, putting the financial security of our families, our national security, and the success of our country at risk,” the lawmakers wrote. “While we may have strong policy disagreements, we should all be united in upholding our nation’s laws and the Constitution.”