White House Budget Office Orders Pause in All Federal Loans and Grants
New York TimesJAN 25
Judge Blocks Trump Freeze on Federal Grants, Loans, Other Assistance
Above: US Pres. Donald Trump walks across the South Lawn of the White House on Jan. 27, 2025. Image copyright: Chip Somodevilla/Staff/Getty Images News via Getty Images
The Facts
Federal Judge Loren AliKhan has granted an administrative stay in a case that contests a proposed massive pause of federal aid programs by the Trump administration. The stay averts the enforcement of the pause that would have gone into effect at 5:00 pm EST Tuesday and sets next Monday morning as the timeline to hear arguments.
This comes as the White House Office of Management and Budget issued a memo earlier Tuesday directing federal agencies to temporarily pause all activities related to federal grants, loans, and other forms of financial assistance — potentially affecting trillions in government funding.
The pause explicitly exempts Medicare, Social Security benefits, and assistance received directly by individuals, though the full scope of exemptions remains unclear.
The Spin
Republican narrative
This pause is a necessary measure to ensure taxpayer dollars aren't wasted on programs that conflict with presidential priorities. The administration will also have time to assess how best to eliminate wasteful spending, especially when it comes to ideological initiatives that don't benefit average Americans.
Democratic narrative
This unprecedented and potentially illegal freeze violates Congress' power of the purse and will have devastating consequences for millions of Americans who rely on federal assistance — including grant funding and loans. The sweeping order threatens to disrupt critical services, while it also creates chaos for states, universities, and nonprofits.