US federal court blocks Trump's plan to freeze grants, loans - FT
Date: 2025-01-29 Author: Кирило Загоруйко Categories: WORLD
A US federal court has blocked President Donald Trump's plan to freeze hundreds of billions of dollars in federal programs. According to the ruling, the funding will continue until a hearing on February 3.
The Financial Times writes that Judge Loren Alikhan's intervention was a response to a lawsuit filed by advocacy groups, including the American Public Health Association, which sought a temporary restraining order until the court assessed the alleged "illegality" of Trump's order to freeze funding.
The freeze on federal financial aid was intended to give the White House time to bring grants and loans into line with Trump's conservative agenda. But the order has sparked a strong backlash, as politicians from both parties weighed in on the potential financial hit to scientific and medical research, as well as to communities that rely heavily on federal support.
All 50 U.S. states receive federal grants that amounted to 36.4%, or $1.1 trillion, of their combined revenue in fiscal year 2022, according to the Pew Research Center.
The memo says that funds for other important programs, such as support for small businesses, farmers, and undergraduate students, will not be frozen. Social Security and Medicare, the government’s health plan for seniors, will also be unaffected, the administration said.
“Freezing federal funding that Congress has already appropriated is unconstitutional; above all, it’s inhumane,” said Senator Dick Durbin, a Democrat from Illinois.
A group of 23 state attorneys general, led by California and New York, said they would file a separate lawsuit seeking to block the plan.
The Medicaid portal used by states went down on Jan. 28, and the White House said it was aware of it. White House press secretary Carolyn Leavitt said "no payments were affected."
That same day, the president moved to halt funding for clean energy projects and virtually all foreign aid.
In the first memo announcing the freeze, the administration told agencies to submit information about their grants and loans to the White House by Feb. 10, leaving many programs in limbo until at least that date.
The administration said the U.S. has spent $3 trillion in federal aid in fiscal year 2024, but it's unclear how much the cuts will amount to.
