A federal judge has halted the Trump administration's freeze on grants and loans that support various programs essential to millions of Americans. US district judge Loren AliKhan's administrative stay, issued in response to a lawsuit from nonprofits and small businesses, prevents the pause from taking effect. The directive by acting OMB head Matthew Vaeth, which excludes social security and certain direct assistance, aimed to freeze all federal financial assistance programs, potentially affecting healthcare, education, and community support services, igniting swift legal challenges from Democratic attorneys general.
"The pause on all federal financial assistance grants and loans has been temporarily blocked by a federal judge, allowing programs relied on by millions to continue."
"Democratic attorneys general, including Letitia James, are poised to take legal action against the Trump administration's directive, claiming it poses threats to vulnerable communities."
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