Federal Judge to Hear Request to Block Trump Administration’s Plan to Freeze Financial Assistance
A US judge is set to hear a request by advocacy groups to block a sweeping directive by President Donald Trump’s administration to temporarily freeze federal loans, grants, and other financial assistance. The freeze is set to take effect at 5pm ET (2200 GMT) on Tuesday.
Groups Argue Freeze is Unlawful and Harmful
The groups, representing non-profits and small businesses, argue that the US Office of Management and Budget (OMB) exceeded its authority in taking the action and that the freeze will have a "devastating impact on hundreds of thousands of grant recipients." They also argue that the OMB lacked authority to unilaterally terminate all federal financial assistance programs across the government.
States to File Lawsuit
Separately, states including New York, California, and Massachusetts, have announced that they will file a lawsuit targeting the directive issued by the OMB. New York State Attorney General Letitia James said, "This policy is reckless, dangerous, illegal, and unconstitutional. The president does not get to decide which laws to enforce and for whom."
OMB’s Rationale
OMB’s acting director, Matthew Vaeth, said that the money would be put on hold while the administration reviews grants and loans to ensure they are aligned with the president’s priorities, including executive orders ending diversity, equity, and inclusion programs.
Court Hearing
US District Judge Loren AliKhan will hold a hearing in a federal court in Washington DC at 4pm EST (2100 GMT) on the request by the advocacy groups. The hearing is set to take place just hours before the freeze is set to take effect.
Conclusion
The controversy surrounding the freeze has sparked concerns about the potential impact on millions of Americans who rely on federal financial assistance. The US Justice Department has yet to comment on the matter. The outcome of the court hearing will have significant implications for the future of federal financial assistance programs.
Frequently Asked Questions
Q: What is the purpose of the freeze?
A: The freeze is intended to review and realign federal financial assistance programs with the administration’s priorities, including executive orders ending diversity, equity, and inclusion programs.
Q: What is the impact of the freeze?
A: The freeze will have a devastating impact on hundreds of thousands of grant recipients, according to the advocacy groups.
Q: What is the legal basis for the freeze?
A: The OMB lacks authority to unilaterally terminate all federal financial assistance programs, according to the advocacy groups.