The lawsuit argues that the temporary hold on already approved federal funds violates the law. The White House had instructed agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.”
A US district court temporarily stayed former President Donald Trump’s decision to freeze funding for federal aid programs. The ruling came on Tuesday after an emergency hearing, as reported by US media.
During the hearing, District Judge Loren AliKhan expressed concerns about potential damage caused by the funding freeze.
“I think there is the specter of irreparable harm,” Judge AliKhan was quoted as saying by multiple media outlets.
The judge scheduled another hearing for Monday and ruled that the freeze should not be implemented until 5:00 pm (2200 GMT) on that day.
The lawsuit argues that the temporary hold on already approved federal funds violates the law. The White House had instructed agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.”
This move was reportedly aimed at giving the new administration time to review existing grants and loans to ensure they align with its policies.
White House Press Secretary Karoline Leavitt justified the stay, stating:
“Trump’s plan to stay billions of dollars in US government funding was about being good stewards of tax dollars.”
She further explained that the funding freeze was meant to reduce spending on what she described as “woke” gender issues and diversity programs.
The decision sparked widespread confusion and backlash, particularly from organizations dependent on federal grants and loans, such as non-profits and research institutions.
Judge AliKhan said she was issuing a temporary stay to “preserve the status quo” until the scheduled oral argument on Monday.
ALSO READ: 277-Page Ruling|| US Court Exposes Google’s Search Engine Manipulations
The White House directive could have affected billions of dollars allocated for crucial federal programs, including disaster relief and cancer research.
Diane Yentel, president of the National Council of Nonprofits, whose organization filed the lawsuit, welcomed the court’s decision.
She shared her reaction on X:
“Our lawsuit was successful – the US district court is blocking OMB (Office of Management and Budget) from moving forward on its reckless plan to halt federal funding.”
The lawsuit further alleges that Trump’s order aims to “eradicate essentially all federal grant programs.”
With another hearing scheduled for Monday, the future of the funding freeze remains uncertain. However, for now, federal aid programs will continue as planned until further court proceedings.
FOLLOW US FOR MORE LEGAL UPDATES ON YOUTUBE
