By Federal Grants and Loans Frozen Temporarily
Judge Loren Ali Khan issued an emergency administrative stay halting a Trump administration order to freeze federal grant and loan disbursements until February 3. The decision was made during a Zoom hearing, minutes before the order was to take effect.
Legal and Economic Stakes
The freeze targets billions in federal funds, affecting nonprofits, businesses, and community programs. Plaintiffs argue the freeze could cause irreparable harm, with many nonprofits at risk of layoffs or closure.
Memo Sparks Confusion and Legal Pushback
The controversial directive requires federal agencies to pause financial disbursements while vetting programs for compliance with Trump’s policies. The order, revealed just hours before its implementation, has drawn widespread criticism.
Nonprofits Speak Out
Advocates, including Diane Yental from the National Council of Nonprofits, highlighted the severe impact on small organizations. “Missing one or two payments can lead to staff layoffs or even shutdowns,” Yental warned.
Hearing Scheduled for February 3
The stay provides temporary relief for affected groups. Advocacy organizations, including Democracy Forward, have vowed to fight the directive, citing its broader implications for community funding and operational stability.