A federal judge temporarily halted President Donald Trump’s attempt to pause trillions in federal spending on Tuesday, after a chaotic day of agencies and states scrambling to determine which funds were affected.
The ruling, effective until February 3, came in response to a legal challenge from public health advocates, nonprofits, and businesses represented by Democracy Forward.
The White House budget office’s Monday night memo ordering the pause sparked confusion across federal agencies racing to identify affected programs before Tuesday’s 5 p.m. deadline. Some states reported being unable to access Medicaid funds, despite White House assurances the program would be exempt.
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The Department of Education clarified that federal student loans and Pell grants would continue, while discretionary grants to school districts and nonprofits would pause. The National Institutes of Health indicated some ongoing research grants would freeze, affecting universities and medical schools.
The Federal Highway Administration confirmed a halt to National Electric Vehicle Infrastructure Program payments, while clean energy grants under recent infrastructure laws face suspension.
The White House explicitly exempted direct benefit programs including Social Security, Medicare and SNAP benefits. Formula-based education funding for high-poverty schools and students with disabilities will continue, as will grants for historically Black colleges.
Several programs remained in limbo Tuesday, including Head Start preschool funding and school meal programs. States reported technical barriers to accessing rental assistance funds, despite official statements declaring them exempt.
Senator Bernie Sanders called Trump’s order “a dangerous move towards authoritarianism” that was “blatantly unconstitutional.”
“The Trump Administration’s action last night to suspend all federal grants and loans will have a devastating impact on the health and well-being of millions of children, seniors on fixed incomes, and the most vulnerable people in our country,” Sanders said in a statement.
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