A coalition of nonprofits, health workers, and small business owners filed a lawsuit against the Trump administration to block a freeze on federal loans and grants. They argue that the freeze, scheduled to take effect at 5 p.m., lacks legal grounding and threatens vital funding for those relying on these funds. The freeze is part of a broader review of compliance with new Trump policies, impacting hundreds of thousands who depend on federal assistance for their operations and livelihoods. The lawsuit emphasizes the immediate need for legal intervention to prevent detrimental effects on grant recipients.
The lawsuit argues that the freeze order is "devoid of any legal basis" and would harm hundreds of thousands of grant recipients who depend on federal assistance.
According to the lawsuit, the freeze will have a devastating impact on grant recipients who rely on federal funds to fulfill missions, pay employees, and cover rent.
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