A federal judge has temporarily blocked part of the Trump administration’s plans to freeze all federal aid, a policy that caused widespread confusion and worry among charities and educators. The temporary pause, issued by US District Judge Loren L. AliKhan, prevents the administration from freezing funding for “open awards” already granted by the federal government until at least February 3.
Background
The Trump administration’s plan to freeze federal aid was announced in an internal memorandum sent by the White House Office of Management and Budget acting director Matthew Vaeth. The memo ordered federal agencies to temporarily pause all activities related to obligation or disbursement of all federal financial assistance, citing administration priorities listed in past executive orders.
Impact on Medicaid and Other Programs
The pause sparked concerns about the impact on Medicaid funding, with state Medicaid agencies initially unable to access federal funds. However, access was later restored, and the Office of Management and Budget clarified that mandatory programs like Medicaid and SNAP (food stamps) would continue without pause.
Reactions and Lawsuits
The temporary loss of access prompted some Democratic lawmakers to criticize the Trump administration, with Sen. Ron Wyden calling it a “blatant attempt to rip away health insurance from millions of Americans overnight.” Several non-profits also filed suit in federal court, asking a judge to stop the Trump administration’s decision.
What’s Next?
Judge AliKhan is expected to consider a longer-term pause on the policy early next week. The Trump administration has maintained that the pause is not a blanket freeze on federal assistance and grant programs, but rather a targeted effort to review and prioritize funding.