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    US judge extends pause on Trump’s plan to freeze federal grants, loans

    Team_NewsStudyBy Team_NewsStudyFebruary 4, 2025 Trending News No Comments2 Mins Read
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    WASHINGTON: A US decide on Monday (Feb 3) prolonged a pause on the Trump administration’s plan to freeze federal loans, grants and other financial assistance, saying it could have “run roughshod” over Congress’s constitutional authority over authorities spending.

    US District Decide Loren AliKhan in Washington wrote {that a} funding freeze outlined in a memo from the White Home funds workplace final week could be “probably catastrophic” for organisations that depend on federal funding to hold out their missions and supply companies to the general public.

    Her ruling, issued on the request of a number of advocacy teams, meant the coverage is now topic to 2 non permanent restraining orders. A federal decide in Rhode Island on Friday issued an analogous order on the behest of Democratic attorneys normal from 22 states and the District of Columbia.

    AliKhan had final week ordered a brief, administrative pause stopping the Workplace of Administration and Price range (OMB) from transferring ahead with its coverage whereas she thought of whether or not to challenge the longer non permanent restraining order.

    OMB in its memo had stated the funding freeze was crucial to make sure funding complied with President Donald Trump’s government orders on immigration, local weather change, variety and different points.

    After first making an attempt to make clear the funding pause, OMB then totally withdrew its memo on Wednesday. The Republican president’s administration had argued the withdrawal ought to have had the impact of ending the lawsuit earlier than AliKhan by a gaggle of advocacy organisations.

    However the decide, an appointee of Trump’s Democratic predecessor Joe Biden, stated a short lived restraining order was nonetheless crucial as a result of funding issues remained and since there was nothing stopping OMB from reissuing the coverage.

    She stated “furthering the president’s needs can’t be a clean verify for OMB to do because it pleases”. OMB’s memo implicated as a lot as US$3 trillion in monetary help, she stated, “a breathtakingly massive sum of cash to droop virtually in a single day”.

    The coverage appeared arbitrary and will have run afoul of Congress’ authority over authorities spending underneath the US Structure, the decide stated.



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