News | International
12 Feb 2025 17:55
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > International

    US judge temporarily blocks Donald Trump's order to pause federal grants and loans

    A US judge temporarily blocks a Trump administration move to pause federal grants and loans while it conducts an across-the-board ideological review to uproot progressive initiatives.


    A US judge has temporarily blocked President Donald Trump's sweeping order to pause federal grants and loans.

    The White House earlier announced it would pause federal grants and loans while the administration conducted an across-the-board ideological review to uproot progressive initiatives.

    The order from US District Judge Loren L AliKhan came minutes before the funding freeze was scheduled to go into effect.

    It lasts until Monday afternoon, local time, and applies only to existing programs.

    Administration officials said the decision to halt loans and grants — a financial lifeline for local governments, schools and nonprofit organisations around the country — was necessary to ensure that spending complied with Mr Trump's recent blitz of executive orders.

    The Republican president wants to increase fossil fuel production, remove protections for transgender people and end diversity, equity and inclusion efforts.

    A vaguely worded memo issued by the Office of Management and Budget, combined with incomplete answers from the White House throughout the day, left politicians, public officials and average Americans struggling to figure out what programs would be affected by the pause.

    Even temporary interruptions in funding could cause lay-offs or delays in public services.

    A spokesperson for the Shawnee Mission School District in Kansas, David Smith, said the order "sort of came out of the blue".

    The district is one of the countless ones that receive federal funding.

    Now it is trying to figure out what it means "based on zero information" Mr Smith said.

    Judge AliKhan, who was appointed by former US president Joe Biden, said in halting the freeze: "It seems like the federal government currently doesn't actually know the full extent of the programs that are going to be subject to the pause."

    Jessica Morton, an attorney for the National Council of Nonprofits, which brought the lawsuit suit, said the group had tens of thousands of members around the country that could be affected.

    "Our client members have reported being extremely concerned about having to shutter if there's even a brief pause," Ms Morton said.

    Justice Department attorney Daniel Schwei said the plaintiffs had not identified anyone specifically who would lose funding right away if the pause went into effect.

    Just minutes after Judge AliKhan ruled, Democratic attorneys-general from 22 states and the District of Columbia filed their own lawsuit seeking to block and permanently prevent the administration from cutting off federal funding.

    "There is no question this policy is reckless, dangerous, illegal and unconstitutional," New York Attorney-General Letitia James said.

    Trump administration says Medicaid not affected by pause 

    Trump administration officials said programs that provided direct assistance to Americans, such as Medicare, Medicaid, Social Security, student loans and food stamps, would not be affected.

    They also defended the funding pause, saying Mr Trump was following through on his promise to turn Washington upside down if elected for a second term.

    Organisations such as Meals on Wheels, which receives federal money to deliver food to the elderly, were worried about getting cut off.

    "The lack of clarity and uncertainty right now is creating chaos," spokeswoman Jenny Young said. 

    She added that "seniors may panic not knowing where their next meals will come from".

    The National Science Foundation postponed this week's panels for reviewing grant applications. 

    Republican leaders in Louisiana said they were "seeking clarity" to ensure nothing was "jeopardising [the] financial stability of the state."

    Washington senator Patty Murray said Mr Trump's actions would "wreak havoc in red and blue communities everywhere". 

    "We are talking about our small towns, our cities, our school districts," she said.

    Officials asked about programs promoting abortion, gender ideology 

    The full scope of the administration's review was spelled out in a 51-page spreadsheet sent to federal agencies and viewed by The Associated Press. 

    Each line was a different government initiative, from pool safety to tribal workforce development, to special education.

    Officials were directed to answer a series of yes or no questions for every item on the list including, "Does this program promote gender ideology?" or, "Does this program promote or support in any way abortion?" 

    Responses are due by February 7.

    Trillions of dollars are potentially under review.

    Grants that have been awarded but not spent are also supposed to be halted if they might violate one of Mr Trump's executive orders.

    "The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve," acting director of the Office of Management and Budget, Matthew Vaeth, said in a memo distributed on Monday.

    The funding pause is the latest example of how Mr Trump is harnessing his power over the federal system to advance his conservative goals. 

    For example, federal employees are being asked to report their colleagues if they try to continue diversity, equity and inclusion initiatives.

    © 2025 ABC Australian Broadcasting Corporation. All rights reserved

     Other International News
     12 Feb: China-backed APT40 hacking group blamed for cyber attacks on Samoa
     12 Feb: Donald Trump trade adviser says Australia 'killing aluminium market' in blow to tariff exemption hopes
     12 Feb: Sam Kerr found not guilty of racially harassing London policeman after calling him 'stupid and white'
     12 Feb: The three things the jury considered before finding Sam Kerr not guilty of racially harassing a policeman
     12 Feb: Damning report calls on all governments to 'urgently' assist Stolen Generations and their families
     12 Feb: Japan to increase nuclear power as new crises overshadow fears of Fukushima repeat
     12 Feb: Who is Max Richter and why is he one of the most popular classical artists today?
     Top Stories

    RUGBY RUGBY
    A further blow to the Hurricanes backline for Friday's Super Rugby opener against the Crusaders in Christchurch More...


    BUSINESS BUSINESS
    ASB's reporting a one-percent increase in net profit, for last year's second half More...



     Today's News

    Entertainment:
    Bill Murray gave out his email address and asked fans to send him a message in an advert which aired during the Super Bowl 17:42

    Living & Travel:
    Former Kiwi enforcer Frank Pritchard believes an NRL expansion club focused on Polynesian talent makes more sense than the three South Island bids 17:27

    Entertainment:
    Isla Fisher's split from Sacha Baron Cohen has been the "most difficult thing" she's been through 17:12

    Law and Order:
    A murderer has been declined parole - 18 years since the former Black Power member bludgeoned his girlfriend to death in Whangarei 16:57

    Entertainment:
    Will Ferrell wanted a "real job" when he was growing up 16:42

    Rugby:
    A further blow to the Hurricanes backline for Friday's Super Rugby opener against the Crusaders in Christchurch 16:37

    Politics:
    China-backed APT40 hacking group blamed for cyber attacks on Samoa 16:27

    Rugby League:
    Former New Zealand and Samoa league rep Frank Pritchard thinks the international game would benefit from the next NRL expansion team being a blend of Maori and Pacific Islanders 16:17

    Entertainment:
    Seal thinks being a parent is the "hardest job" ever 16:12

    National:
    Diabetes during pregnancy can cause serious problems later – mothers need proper screening after birth 16:07


     News Search






    Power Search


    © 2025 New Zealand City Ltd