A federal judge has temporarily blocked President Donald Trump’s administration from freezing federal loans, grants, and other financial assistance to 22 states. The move was met with resistance from Democratic attorneys generals from the 22 states and the District of Columbia, who argued that the policy would cause significant harm to grant recipients and violate the US Constitution.
The ruling comes after the administration’s Office of Management and Budget (OMB) issued a memo earlier this month directing the freeze, which would halt funding for programs such as healthcare, education, and transportation. The states received over $1 trillion in grants in fiscal year 2022, amounting to 36.4% of their total revenue.
The Democratic state attorneys general argued that the memo would disproportionately affect vulnerable populations, including low-income families, seniors, and individuals with disabilities. They also claimed that the policy would infringe on Congress’s power to decide how federal money is spent.
The administration has since withdrawn the memo, but the states and the District of Columbia have continued to press their case, arguing that the underlying policy remains in effect. Judge John McConnell has issued a temporary restraining order, blocking the administration from implementing the policy until further notice.
The case is ongoing, with a hearing scheduled for Monday to consider whether to issue a longer preliminary injunction. The outcome may have significant implications for the future of federal funding for critical programs and services, and the balance of power between the executive and legislative branches of government.