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Federal Judge Temporarily Halts Trump Administration's Federal Aid Freeze

Thursday, January 30, 2025 by Elizabeth Alvarado

A federal judge in the District of Columbia, Loren L. AliKhan, has issued a temporary block on the Trump administration's directive to freeze federal assistance, pending a review of its legality. This decision comes in response to a lawsuit filed by Democracy Forward, which contends that the Office of Management and Budget's (OMB) directive breaches the First Amendment and federal laws governing executive orders.

Judge AliKhan has paused the freeze until Monday, when a hearing is scheduled to take place. During an emergency session, arguments were presented by the Department of Justice and the National Council of Nonprofit Organizations, which raised concerns about the impact on beneficiaries. Jessica Morton, an attorney for the affected groups, emphasized that the freeze could jeopardize payrolls and essential payments. Meanwhile, Daniel Schwei, representing the Department of Justice, argued that no immediate harm has been proven.

Consequences and Public Response

The OMB's memorandum mandates a temporary suspension of financial aid for foreign assistance, NGOs, diversity and equity programs, and Green New Deal initiatives. Despite exclusions for Medicaid and Social Security, several state Medicaid agencies encountered difficulties accessing funds on Tuesday.

Organizations such as Meals on Wheels have warned that the freeze could impact millions of vulnerable recipients. In response, attorneys general from 22 states have announced lawsuits against the OMB order, arguing it interferes with Congress, which holds the sole authority to determine public spending.

Ongoing Legal Battle

This injunction marks the second recent judicial setback for Trump. Just last week, a judge halted his order to rescind birthright citizenship. Given the significant impact of the aid freeze, the case might ascend to the Supreme Court, becoming a pivotal discussion on the limits of presidential power.

Trump has targeted his agenda at dismantling progressive programs, cutting funds for inclusion projects and the Green New Deal. However, the disruption in funding affects areas from infrastructure to international aid, creating uncertainty and potential new legal challenges.

Key Questions on Federal Aid Freeze

What prompted the federal judge to block the aid freeze?

The judge blocked the aid freeze due to a lawsuit by Democracy Forward, claiming it violates the First Amendment and laws on executive orders.

Which programs are affected by the OMB's aid freeze?

The aid freeze impacts foreign assistance, NGOs, diversity and equity programs, and Green New Deal projects, while excluding Medicaid and Social Security.

How have organizations responded to the aid freeze?

Organizations like Meals on Wheels have expressed concern about the impact on vulnerable beneficiaries, while 22 state attorneys general have filed lawsuits against the freeze.

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