A federal court in the United States has blocked President Donald Trump's plan to freeze payments to federal programs amounting to hundreds of billions of dollars. According to the ruling, funding will continue until hearings on February 3.
The Financial Times reports that the intervention by Judge Loren Alihan was a response to a lawsuit filed by civil rights groups, including the American Public Health Association, which sought a temporary restraining order until the court could assess the alleged "illegality" of Trump's funding freeze order.
The freeze on federal financial aid was intended to give the White House time to align grants and loans with Trump's conservative agenda. However, the directive sparked significant backlash, as politicians from both parties recognized the potential financial blow to scientific and medical research, as well as to communities heavily reliant on federal support.
According to the Pew Research Center, all 50 states in the U.S. receive federal grants, which accounted for 36.4%, or $1.1 trillion, of their total revenue in the 2022 fiscal year.
The memorandum states that funds for other essential programs, such as support for small businesses, farmers, and senior students, will not be frozen. Social Security and Medicare, the federal health care program for the elderly, will also remain unaffected, the administration clarified.
"Freezing federal funding that has already been allocated by Congress is unconstitutional; above all, it is inhumane," said Dick Durbin, a Democratic senator from Illinois.
A group of 23 state attorneys general, led by California and New York, announced that they would file a separate lawsuit to block the plan.
The Medicaid portal used by states ceased operations on January 28, and the White House acknowledged awareness of this issue. Caroline Levitt, the White House press secretary, assured that "no payments have been affected."
On the same day, the president decided to halt funding for clean energy projects and nearly all foreign aid.
In the initial memorandum regarding the freeze, the administration instructed agencies to submit information on their grants and loans to the White House by February 10, leaving many programs in limbo at least until that date.
The administration stated that in the 2024 fiscal year, the U.S. spent $3 trillion on federal financial assistance, but it remains unclear what the extent of the cuts will be.
Halting U.S. Aid Program Funding
The White House has stopped payments for all federal grants and loans, while President Trump's team has initiated a major review of internal budget expenditures.
Previously, Trump had halted funding for aid programs to other countries for 90 days—specifically under the USAID program, which implements several projects in Ukraine.
Deputy Head of the President's Office Iryna Vereshchuk commented on the situation, stating that the suspension of USAID funding cannot be overlooked, but this is "neither the first nor the last challenge we must overcome."