Trump’s Federal Grant Freeze Faces Legal Setback

A controversial freeze on federal grants and loans that has threatened to disrupt vital government aid has been rescinded after a legal challenge. This follows a reported temporary halt to the order by a judge on Tuesday, just hours after President Donald Trump signed it.

The memo was issued by the Office of Management and Budget (OMB) and sparked a widespread panic among Americans who rely on government assistance. White House Press Secretary Karoline Leavitt stated, “This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo.”

According to the BBC, the office later clarified that the move was meant to allow the new administration time to evaluate which grants and loans aligned with their agenda. However, the order led to confusion and disruption, including a brief shutdown of an online portal for federal funds.

Democrats, including Senate Minority Leader Chuck Schumer, condemned the freeze as harmful to families and vowed to continue opposing such measures. Nonprofit groups added that critical services, like housing and disaster relief, could be impacted.