BUFFALO, N.Y. (WKBW) — A federal judge has temporarily blocked a White House freeze on federal grants and loans, which could have affected trillions of dollars in government spending on public programs.
The White House Budget Office had issued a directive to pause all federal financial assistance to ensure compliance with President Trump's executive orders.
This pause, announced in a memo, would not impact Social Security, Medicare, or student loans but could disrupt healthcare research, education programs, disaster assistance, and non-profits.
The potential pause caused significant confusion throughout the day, but according to Scripps News, U.S. District Judge Loren L. AliKhan ruled Tuesday afternoon that payment of active federal awards would have to continue, effective immediately and through at least February 3. You can read more from Scripps News here.
"We are reviewing the memo right now, trying to figure out what the impact is," said Congressman Nick Langworthy, who noted that the order is temporary as the administration reviews federal funding allocations.
Senate Minority Leader Charles Schumer criticized the decision, calling it "lawless, dangerous, destructive, and cruel," highlighting potential impacts on disaster assistance, local law enforcement, rural hospitals, and aid to the elderly.
FeedMore Western New York, which relies on over $18 million in federal funding annually, expressed concern about the pause's potential impact.
"The Office of Management and Budget’s temporary pause on all disbursements of federal loans and grant programs may have a wide-ranging impact on FeedMore WNY’s ability to provide nutritious food and vital resources to community members experiencing food insecurity, the full extent of which we have yet to fully understand," said Catherine Shick, Public Relations Manager, FeedMore WNY in a statement.
Shawn Donahue, an assistant professor of political science at the University at Buffalo, noted the uncertainty surrounding the freeze's duration and its implications for organizations relying on federal funds.
As the legal challenges unfold, the temporary block on the White House's funding freeze provides a reprieve for many organizations and programs that depend on federal support. A hearing is set for Monday to further examine the implications of the freeze.
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