Federal Judge Halts Trump's Freeze on Grants and Loans

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A federal judge has temporarily blocked President Donald Trump's plan to freeze federal grants and loans, a move that alarmed states and organizations dependent on federal funding. US District Judge Loren L. Ali Khan issued the administrative stay just before the funding freeze was to begin, following a lawsuit from nonprofit groups claiming the approach was illegal, according to the Associated Press.

The Trump administration argued that the freeze was essential to ensure compliance with his recent executive orders aimed at reducing spending on progressive initiatives. However, the ambiguously worded memo from the Office of Management and Budget left many lawmakers scrambling for clarity on the implications for existing programs, raising concerns over potential layoffs and service disruptions.

Democratic leaders criticized the decision as reckless and unconstitutional, with New York Attorney General Letitia James calling it “dangerous.” In response to the ruling, Democratic attorneys general from 22 states filed a lawsuit seeking to permanently block the funding cuts. The administration clarified that essential programs like Medicare and Social Security would remain unaffected.

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