Trump’s freeze on $3T federal funds blocked by judge

The White House Office of Management and Budget (OMB) issued an internal memo yesterday temporarily pausing over $3 trillion in federal grants and loans, triggering widespread uncertainty and confusion across Washington.

However, a federal judge temporarily halted part of the funding freeze on federal aid before it went into effect, preventing the suspension of already-awarded grants until at least February 3.

The White House insisted it wasn’t a blanket freeze, but confusion spread. Medicaid portals (which cover 72 million low-income Americans) briefly went down, even though the administration said that it wouldn’t affect Social Security and Medicaid.

Organizations like Meals on Wheels (for the elderly) and Head Start (that feeds 800,000 low-income and their families) warned of disruptions.

According to the OMB memo, federal agencies must halt financial disbursements and conduct a review of nearly 2,000 government programs to ensure they align with President Donald Trump’s policies.

The orders limit funding for DEI initiatives, clean energy and foreign aid (Egypt and Israel were exempt), nongovernmental organizations, and woke gender ideology.

The federal judge’s temporary restraining order came after plaintiffs challenged the Trump administration’s actions. Congress, in 1974, passed the Impoundment Control Act, which makes it harder for a president to withhold funds already allocated by lawmakers. However, since the current pause by the president is temporary, it may not be breaking the law.