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President Donald Trump's move to freeze hundreds of billions worth of grants and loans going from the center to the states in the US has been halted for the time being.
District of Columbia Judge Lorraine L. Alikhan stayed President Trump's order until Monday at 5 p.m. local time. It is said that the hearing of the case will be resumed on Monday morning.
Judge Alikhan gave the order in response to a lawsuit filed on Tuesday by a group of organizations representing those who have been benefiting from the subsidies given by the federal government. He says the White House's actions to block already approved funding violate the law. "It appears that the federal government does not know the full extent of the programs it is currently trying to block," she said. He was appointed as a judge by former President Joe Biden.
Trump administration officials have stated that the decision to stop loans and grants was made in accordance with the President's recently issued executive order. President Trump signed an executive order ending protections for transgender people as well as Diversity, Equity and Inclusion (DEI) efforts to increase fossil fuel production within the United States.
The Office of Management and Budget (OAB) of the President's Office of the White House directed subordinate agencies to "temporarily suspend all activities related to the obligation or disbursement of all federal financial assistance."
In addition to that, CBS News reports that immigration, energy and other topics are also covered. $30 trillion spent on federal aid programs in 2024.
Former President Joe Biden's administration pioneered the concept of DEI to ensure representation of historically marginalized communities. But Trump has termed the program as 'discrimination'. He said that the recruitment of employees in any agency should be based on merit.
But there was confusion about the affected programs due to unclear wording in the instructions issued by the OAB. The Trump administration claimed that it took this step because it needed time to assess the need for thematic grants and loans.
White House Press Secretary Carolyn Levitt claimed that Trump's plan to freeze billions of dollars in US government funds is a step to manage taxpayers' money responsibly and wisely. Speaking to
reporters, she said the new decision would allow governments to cut spending on gender issues and diversity programs. But the move angered opponents as well as nonprofits and research organizations. The White House directive is expected to affect billions of dollars earmarked for federal programs in areas ranging from disaster relief to cancer research.
Democrats said the president does not have the unilateral authority to block funds appropriated by Congress. The Coalition of Democratic States also filed a separate lawsuit Tuesday against the order. Democratic leader of the US Senate, Chuck Sumer, said that the President's action will cause problems in the payment of wages and rent to employees.
Top Democrats have written to the White House, saying the funding cuts would pose "extreme risks." The President's order is unprecedented. And, it will have devastating consequences across the country,” wrote Washington Senator Patty Murray and Connecticut Representative Rosa DeLauro.
