By: CA Staff Writer | Jan 29, 2025
A federal judge has temporarily halted President Donald Trump’s attempt to freeze federal funding while his administration reviews spending to cut progressive initiatives. U.S. District Judge Loren L. AliKhan issued the ruling just minutes before the freeze was set to take effect, preventing immediate disruptions to critical programs and services.
Despite the uncertainty surrounding Trump’s executive orders, according to the U.S Office of Management and Budget (OMB) memo, several key federal programs have been confirmed as exempt from the funding pause, including:
- Social Security and Medicare – The administration explicitly stated that these entitlement programs will not be impacted.
- Medicaid – After initial confusion, the White House clarified that Medicaid will continue without interruption.
- Supplemental Nutrition Assistance Program (SNAP) – Commonly known as food stamps, SNAP benefits, which serve over 41 million low-income Americans, are not affected.
- Pell Grants – Federal financial aid for college students will continue as usual.
- Head Start – The preschool program for low-income families will not lose funding, though concerns remain about administrative delays.
- Rental Assistance Programs – Support for low-income housing will continue, though housing advocates worry about indirect impacts.
Although these programs are officially excluded from the funding freeze, some agencies and nonprofit organizations report difficulties accessing federal funds. The National Low Income Housing Coalition (NLIHC) warned that any delay in funding distribution could still harm families who rely on rental assistance. Similarly, the National Head Start Association (NHSA) stated that some grant recipients are struggling to access funds, potentially affecting staff payments and program operations.
Meanwhile, an outage in the Department of Health and Human Services’ payment system has caused temporary disruptions, raising further concerns about whether Medicaid and other health programs will face delays.
Trump’s funding freeze was immediately met with legal challenges. Minutes after AliKhan’s ruling, attorneys general from 22 states and the District of Columbia filed a lawsuit to permanently block the measure, arguing that the president lacks the authority to withhold congressionally appropriated funds.
Judge AliKhan, appointed by President Joe Biden, questioned the administration’s lack of clarity, noting that officials struggled to outline which programs would be affected. The court ruling provides temporary relief, but another hearing scheduled for Monday could determine the long-term fate of the freeze.
For now, the ruling ensures that essential programs like Social Security, Medicaid, and food assistance remain funded. However, nonprofit groups and state agencies remain wary of potential delays, and legal battles over the administration’s authority to pause funding are far from over. The outcome of this fight could have lasting consequences for millions of Americans who depend on federal support.
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