letter from senior Democrats on the House Committee on Appropriations expressed “extreme alarm about the Administration’s efforts to undermine Congress’s power of the purse”, adding that this and other directives had “sown immense confusion across the country, with some reports indicating that they could immediately halt all federal funding for any grant or loan”.
US district judge Loren AliKhan granted the temporary halt after several advocacy groups argued the freeze would devastate programmes ranging from healthcare to road construction. The court will revisit the issue on Monday.
US politics.
We start with the news that a federal judge has temporarily blocked a move by President Trump to pause trillions of dollars in federal loans, grants, and other financial assistance.
A two-page internal memo had told all federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance” and that “the use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars”.
The directive was seen as part of Trump’s desire to end programmes related to diversity, equity, and inclusion (DEI). The court order came moments before it was due to take effect and will prevent it from being implemented until at least next Monday, 3 February.
The administrative stay came in response to a lawsuit filed by four groups representing non-profits, public health professionals and small businesses in which they said the directive was illegal and would have a “devastating impact on hundreds of thousands of grant recipients who depend on the inflow of grant money”Stay with us for more on that and all the latest updates throughout the day.
