WASHINGTON 鈥 A federal judge on Tuesday temporarily blocked a push from President听听to pause federal funding while his administration conducts an across-the-board ideological review to uproot progressive initiatives.
The Trump administration plan plunged the U.S. government into panic and confusion and set the stage for a constitutional clash over control of taxpayer money.
The order from U.S. District Judge Loren L. AliKhan came minutes before the funding freeze was scheduled to go into effect. It lasts until Monday afternoon and applies only to existing programs.
Administration officials said the decision to halt loans and grants 鈥 a financial lifeline for local governments, schools and nonprofit organizations around the country 鈥 was necessary to ensure that spending complies with Trump鈥檚 recent听听
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President Donald Trump speaks to reporters aboard Air Force One en route from Miami to Joint Base Andrews, Md., Monday, Jan. 27, 2025.
The Republican president wants to increase听, remove protections for听听and end听
A vaguely worded memo issued by the Office of Management and Budget, combined with incomplete answers from the White House throughout the day, left lawmakers, public officials and average Americans struggling to figure out what programs would be affected by the pause. Even temporary interruptions in funding could cause layoffs or delays in public services.
鈥淭his sort of came out of the blue,鈥 said David Smith, a spokesperson for the Shawnee Mission School District in Kansas, one of countless districts that receive federal funding. They're trying to figure out what it means 鈥渂ased on zero information.鈥
AliKhan, who was appointed by President Joe Biden, said in halting the freeze, 鈥淚t seems like the federal government currently doesn鈥檛 actually know the full extent of the programs that are going to be subject to the pause."
A group of nonprofit organizations filed a lawsuit in Washington saying that the funding pause is 鈥渄evoid of any legal basis or the barest rationale.鈥
Jessica Morton, an attorney for the National Council of Nonprofits which brought the suit, said the group has tens of thousands of members around the country that could be affected.
鈥淥ur client members have reported being extremely concerned about having to shutter if there鈥檚 even a brief pause,鈥 Morton said.
Justice Department attorney Daniel Schwei said the plaintiffs hadn鈥檛 identified anyone specifically who would lose funding right away if the pause goes in effect.
Just minutes after AliKhan ruled, Democratic attorneys general from 22 states and the District of Columbia filed their own lawsuit seeking to block and permanently prevent the administration from cutting off federal funding.
鈥淭here is no question this policy is reckless, dangerous, illegal and unconstitutional,鈥 New York Attorney General Letitia James said.
Trump administration officials said programs that provide direct assistance to Americans听鈥斕齭uch as Medicare, Medicaid, Social Security, student loans and food stamps 鈥 would not be affected. They also defended the funding pause, saying Trump was following through on his promise to turn Washington upside down if elected to a second term.
However, the effects were felt far from the nation鈥檚 capital. Organizations like Meals on Wheels, which receives federal money to deliver food to the elderly, were worried about getting cut off.
鈥淭he lack of clarity and uncertainty right now is creating chaos,鈥 spokeswoman Jenny Young said. She added that 鈥渟eniors may panic not knowing where their next meals will come from.鈥
The National Science Foundation postponed this week鈥檚 panels for reviewing grant applications.
Officials in Prichard, Alabama, feared they wouldn鈥檛 receive infrastructure funding to fix their leaking drinking water system. Republican leaders in Louisiana said they were 鈥渟eeking clarity鈥 to ensure nothing was 鈥渏eopardizing financial stability of the state.鈥
鈥淭rump鈥檚 actions would wreak havoc in red and blue communities everywhere,鈥 said Sen. Patty Murray of Washington, the top Democrat on the Senate Appropriations Committee. 鈥淲e are talking about our small towns, our cities, our school districts.鈥
The full scope of the administration鈥檚 review was spelled out in a 51-page spreadsheet sent to federal agencies and viewed by The Associated Press. Each line was a different government initiative, from pool safety to tribal workforce development to special education.
Officials were directed to answer a series of yes or no questions for every item on the list, including 鈥渄oes this program promote gender ideology?鈥 or 鈥渄oes this program promote or support in any way abortion?鈥 Responses are due by Feb. 7.
Trillions of dollars are potentially under review. Grants that were awarded but not spent also were to be halted if they violate one of Trump鈥檚 executive orders.
鈥淭he use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,鈥 Matthew Vaeth, acting director of the Office of Management and Budget,听wrote听in a memo distributed Monday.
Vaeth wrote that 鈥渆ach agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President鈥檚 executive orders.鈥 He also wrote that the pause should be implemented 鈥渢o the extent permissible under applicable law.鈥
The pause on grants and loans was scheduled to take effect at 5 p.m. ET, just one day after agencies were informed of the decision.
Democrats described the Trump administration鈥檚 decision as capricious and illegal. They argued that the president had no right to unilaterally stop spending money appropriated by Congress.
The issue dominated听听held by White House press secretary Karoline Leavitt. She said the administration was trying to be 鈥済ood stewards鈥 of public money by making sure that there was 鈥渘o more funding for transgenderism and wokeness.鈥
She denied that Trump deliberately challenged Congress to establish his dominance over the federal budget.
鈥淗e鈥檚 just trying to ensure that the tax money going out the door in this very bankrupt city actually aligns with the will and the priorities of the American people,鈥 she said.
The Environmental Protection Agency confirmed it would implement the pause to 鈥渁lign federal spending and action with the will of the American people as expressed through President Trump鈥檚 priorities.鈥 The Department of Energy also said it was reviewing its spending.
The funding pause is the latest example of how Trump is harnessing his power over the federal system to advance his conservative goals. Unlike during his first term, when Trump and many members of his inner circle were unfamiliar with Washington, this time he鈥檚 reaching deep into the bureaucracy.
For example, federal employees were asked to report their colleagues if they try to continue听
鈥淭hey are pushing the president鈥檚 agenda from the bottom up,鈥 said Paul Light, an expert on the federal government and professor emeritus of public service at New York University.
He also said there are risks in Trump鈥檚 approach, especially with so many voters reliant on Washington.
Fears about interruption in government services were exacerbated as states reported problems with the Medicaid funding portal, where officials request reimbursement for providing health care to poor residents.
Democrats condemned the Trump administration, connecting the issue to the funding pause.
But Leavitt said the portal would be back online soon.
鈥淲e have confirmed no payments have been affected 鈥 they are still being processed and sent," she posted on social media.
Associated Press writers JoNel Aleccia, Moriah Balingit, Collin Binkley, Matthew Daly, Lisa Mascaro, Adithi Ramakrishnan, Amanda Seitz, Michael Sisak, Lindsay Whitehurst and Tammy Weber contributed to this report.