{"id":3933,"date":"2025-01-29T20:47:00","date_gmt":"2025-01-29T20:47:00","guid":{"rendered":"https:\/\/usatrustedlawyers.com\/blog\/trump-administrations-funding-freeze-temporarily-blocked-justia-news-january-29-2025\/"},"modified":"2025-01-29T20:47:00","modified_gmt":"2025-01-29T20:47:00","slug":"trump-administrations-funding-freeze-temporarily-blocked-justia-news-january-29-2025","status":"publish","type":"post","link":"https:\/\/usatrustedlawyers.com\/blog\/trump-administrations-funding-freeze-temporarily-blocked-justia-news-january-29-2025\/","title":{"rendered":"Trump Administration’s Funding Freeze Temporarily Blocked \u2014 Justia News \u2014 January 29, 2025"},"content":{"rendered":"\n
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On Tuesday, January 28, 2025, U.S. District Judge Loren AliKhan temporarily blocked the Trump administration\u2019s attempt to freeze federal grants, loans, and other financial assistance.<\/p>\n

A memo from the Office of Management and Budget<\/a>, dated January 27, 2025, ordered a temporary pause in federal funding for \u201call activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency actions that may be implicated by [President Trump\u2019]s executive orders.\u201d The temporary pause was set to take effect on January 28, 2025, at 5:00 p.m. A senior administration official said that the order should not be understood to mean a full funding freeze. Rather, the official stated that agencies were to review grants, loans, and other programs to ensure compliance with the administration\u2019s priorities. The Office of Management and Budget issued a fact sheet<\/a> that states the pause in funding is \u201cexpressly limited to programs, projects, and activities implicated by the President\u2019s Executive Orders, such as ending DEI, the green new deal, and funding nongovernmental organizations that undermine the national interest.\u201d President Trump has signed 38 executive orders<\/a> thus far into his second term.<\/p>\n

A lawsuit was filed in the U.S. District Court, District of Columbia, on January 28th by the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and Sage against the Office of Management and Budget. The nonprofit organizations requested a temporary stay, arguing that the memo \u201cfails to explain the source of OMB\u2019s purported legal authority to gut every grant program in the federal government.\u201d The complaint also argues that the memo \u201cfails to consider the reliance interest of the many grant recipients. . . and announces a policy of targeting grant recipients based in part on those recipients\u2019 First Amendment rights and with no bearing on the recipients\u2019 eligibility to receive federal funds.\u201d Judge AliKhan granted the request for temporary stay. The stay is in effect until Monday, February 3rd, at which point another hearing is scheduled.<\/p>\n

Shortly after Judge AliKhan\u2019s order granting the temporary stay in the nonprofit organizations\u2019 lawsuit, attorneys general from 22 states and the District of Columbia filed a separate lawsuit in the U.S. District Court for the District of Rhode Island challenging the funding freeze. The request for an emergency temporary restraining order argues that the memo violates the Administrative Procedure Act and is unconstitutional. The request alleges that \u201c[t]he substantial confusion created by the [memo]. . . will result in immediate and devastating harm to Plaintiff States.\u201d The attorneys general claim that the memo will prevent states from providing \u201ccertain essential benefits for residents, pay public employees, satisfy obligations, and carry on the the important business of government.\u201d Chief U.S. District Judge John McConnell will hear the request for an emergency temporary restraining order later today.<\/p>\n

Additional Reading<\/strong><\/p>\n

Trump administration to defend funding freeze against another legal challenge<\/a>, Reuters<\/em> (January 29, 2025)<\/p>\n

Judge pauses Trump\u2019s federal funding freeze as confusion and frustration spread<\/a>, NPR<\/em> (January 28, 2025)<\/p>\n

Federal Judge Temporarily Halts Trump\u2019s Federal Grants Freeze<\/a>, Democracy Docket<\/em> (January 28, 2025)<\/p>\n

National Council of Nonprofits et al v. Office of Management and Budget et al<\/a><\/em> (Case No. 1:2025cv00239)<\/p>\n

Complaint in National Council of Nonprofits et al v. Office of Management and Budget et al<\/em><\/p>\n

State of New York et al v. Trump et al<\/a><\/em> (Case No. 1:2025cv00039)<\/p>\n

Request for Emergency Temporary Restraining Order in State of New York et al v. Trump et al<\/em><\/p>\n

Photo Credit: <\/strong>Tada Images \/ Shutterstock.com<\/p>\n<\/div>\n