Trump’s funding freeze temporarily blocked by federal judge

Millions of low-income Americans and numerous federal programs were thrown into turmoil on Tuesday after former President Donald Trump ordered a freeze on federal funding— a move critics condemned as unconstitutional.

The executive order marked Trump’s latest aggressive action since returning to office a week ago, as he pushes for government agencies to align with his right-wing agenda or risk consequences.

The directive potentially put trillions of dollars in grants, loans, and other federal aid at risk, but a federal judge intervened just before it was set to take effect Tuesday afternoon. Judge Loren AliKhan issued a temporary halt until at least Monday, according to U.S. media, after nonprofit organizations sued, arguing the move was unlawful.

Even before the freeze took effect, online platforms that provide access to Medicaid— the health insurance program for low-income families and disabled individuals— became unavailable.

“This is a blatant attempt to strip millions of Americans of their health coverage overnight, and people will die as a result,” Oregon Senator Ron Wyden wrote on X.

White House Press Secretary Karoline Leavitt insisted that no payments had been disrupted and that the website issues would soon be resolved. She defended the funding pause as a necessary step in Trump’s effort to ensure responsible use of taxpayer dollars.

“This isn’t a blanket halt on spending,” Leavitt explained. “It’s a way to verify that every dollar spent aligns with the president’s executive orders and policies.”

She cited racial equity and climate change initiatives— both of which Trump has vowed to dismantle— as examples of programs under review. However, she did not clarify whether Medicaid beneficiaries would be affected.

Later, Trump adviser Stephen Miller told CNN that Medicaid was not directly targeted, emphasizing that the order “does not affect any required government service, entitlement, public assistance program, or individual benefit.”

This sweeping funding freeze follows a similar suspension of most U.S. foreign aid.

Constitutional Concerns

The order, signed by acting Office of Management and Budget (OMB) Director Matthew Vaeth, did not specify how long the funding pause would last or how agencies should implement it.

In fiscal year 2024, Congress approved over $3 trillion in federal financial assistance through grants and loans. Critics argue that Trump’s move undermines Congress’s constitutional authority over government spending.

Democrats denounced the order as a power grab aimed at forcing federal agencies to comply with Trump’s agenda. Over the past week, his administration has also removed independent government watchdogs and career prosecutors involved in investigations into his efforts to overturn the 2020 election.

Leavitt defended the legality of the measure, citing White House attorneys and asserting that Trump “has the power to fire anyone” in his administration.

However, Columbia Law School professor Gillian Metzger told AFP that “the power of the purse traditionally belongs to Congress.” Legal challenges could reference the Impoundment Control Act, which restricts the president’s ability to withhold congressionally approved funds.

While the law allows for certain delays in spending, Metzger argued that the order does not meet the necessary criteria. “Congressional spending cannot be deferred simply because of a policy disagreement,” she noted.

‘Sweeping Halt’

Senator Patty Murray called the order “a brazen and illegal move,” while Senator Richard Blumenthal warned it would cause “chaos” in medical and research institutions reliant on federal funding.

A White House memo instructed federal agencies to “temporarily pause all activities,” though it explicitly exempted Social Security and Medicare benefits, which serve retirees.

The memo also suggested that programs related to “foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the Green New Deal” could be among those affected— signaling a direct challenge to racial equity and climate policies Trump has pledged to dismantle.