Federal Judge Blocks Trump Administration’s Federal Grants and Loans Freeze
White House Press Secretary Clarifies that Individual Assistance Programs Will Not Be Affected by the Federal Grants and Loans Freeze

A federal judge has temporarily blocked the Trump administration’s decision to freeze federal grants and loans for various programs. The decision, made by U.S. District Judge Loren Ali Khan of the District of Columbia, halts the freeze, which was initially put in place by the Office of Management and Budget (OMB). The pause will remain in effect until at least Monday.
During a virtual court hearing, Judge Ali Khan heard arguments from both sides, including the Department of Justice and plaintiffs’ lawyers. Ali Khan expressed concern about the potential harm caused by the freeze, stating, “I do think there is the specter of irreparable harm.”
New York Attorney General Letitia James led a coalition of 22 state attorneys general in filing a lawsuit against the freeze. In a statement, James emphasized that the freeze would severely disrupt essential services funded by federal grants, including health care, childcare, and support for public schools. “This policy puts an indefinite pause on the majority of federal assistance to states and will immediately jeopardize critical programs,” she said. “It affects life-saving disaster relief, services for vulnerable populations, and the fight against hate crimes and violence against women.”
The coalition argued that the freeze would leave millions of Americans without vital services, such as Medicaid and mental health treatment programs. They also pointed out that law enforcement efforts, including drug enforcement, would be impacted. Additionally, states like California and North Carolina rely on federal funding for disaster relief, which would be interrupted by the freeze.
Despite the confusion surrounding the freeze, White House Press Secretary Karoline Leavitt clarified that programs directly benefiting individuals, such as Social Security, Medicare, and food assistance, would continue unaffected. She also acknowledged a temporary issue with the Medicaid portal but reassured the public that payments would still be processed.
Leavitt also noted that the OMB memo’s impact was not as widespread as some reports suggested. The administration is working with agencies to ensure that crucial programs remain operational. In a supplemental memo, the OMB clarified that the pause could last only a day and that many programs had already been approved to continue.
The Department of Defense also issued a statement, clarifying that the freeze does not apply to defense contracts. However, it acknowledged that some financial assistance programs may be temporarily affected as they review the impact of the freeze.
Stephen Miller, White House Deputy Chief of Staff, dismissed the concerns surrounding the freeze, calling it a “media hoax” and insisting that aid and benefit programs were not impacted.