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Federal judge blocks White House freeze on 'financial assistance' amid anger, confusion

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Federal judge blocks White House freeze on 'financial assistance' amid anger, confusion

A federal judge Tuesday temporarily blocked a Trump administration directive that would have frozen an array of federal financial aid while the administration assessed whether it comported with the new president’s agenda, finding the directive had the potential to cause “irreparable harm” to Americans.

U.S. District Judge Loren AliKhan delayed the Office of Management and Budget memorandum from taking effect until at least 5 p.m. Monday, while a legal challenge to it by a coalition of nonprofit organizations plays out.

The ruling by AliKhan, an appointee of President Biden, followed a rush of confusion and anger among Democratic leaders, state officials and federal program managers over the directive’s vagueness, as well as efforts by the White House to walk back its scope after first issuing the memo late Monday.

Dr. Georges C. Benjamin, executive director of the American Public Health Assn. — part of the coalition that sued — said the directive had the potential to cause “a lot of dysfunction and the loss of services,” and welcomed the judge’s decision to halt it while the litigation proceeds.

“When you run a nonprofit or a small business, and basically your bank account has been, in effect, closed … you have no sense of whether you’re going to get reimbursed for that work — that’s a big problem,” he said.

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The administration’s order was also facing a separate legal challenge from California and other states, where officials argued the directive was an unconstitutional power grab by President Trump that would harm vulnerable populations.

“We will not stand by while the president attempts to disrupt vital programs that feed our kids, provide medical care to our families and support housing in our communities,” California Atty. Gen. Rob Bonta said at a news conference. “We won’t stand by while the president breaks the law and oversteps his authority, as outlined in our Constitution.”

Bonta said the order threatens trillions of dollars in federal funding, and was “reckless, it is dangerous, unprecedented in scope and devastating in its intended effect.”

New York Atty. Gen. Letitia James, who is leading the effort with Bonta, called the memo “plainly unconstitutional.”

“The president does not get to decide which laws to enforce and for whom,” James said. “When Congress dedicates funding for a program, the president cannot pull that funding on a whim.”

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Bonta and James spoke after a day of swirling speculation about the scope of the order — which the White House downplayed even as it worked to specify the order’s reach.

The White House issued an updated memo Tuesday that expanded a list of programs exempted from the funding pause, including Social Security, Medicare, Medicaid and the food assistance program known as SNAP. Also exempted would be federal funding for small businesses, farmers, Pell Grant recipients, Head Start, rental assistance “and other similar programs,” the White House said.

Karoline Leavitt, Trump’s press secretary, said that the directive was “not a blanket pause on federal assistance and grant programs” and that anyone receiving “individual assistance from the federal government” would continue receiving that aid. She also noted that the cuts, which were meant to take effect Tuesday afternoon, were temporary, and that leaders of federal programs were free to call Trump budget officials to make the case that their programs should not be frozen.

She also suggested the administration was clear on the order’s scope, and confusion on that front was limited to the media.

Both James and Bonta said the White House’s attempts to minimize the scope of the order after confusing program managers and terrifying benefit recipients across the country did not resolve their concerns or negate the need for their lawsuit.

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On the contrary, Bonta said that the initial order had “thrown state programs into chaos,” and the White House’s attempts to clarify it had “further fueled” the confusion.

James said some states were already reporting that funds had been frozen, including for programs that the White House said would not be affected. Many states had been shut out of their Medicaid reimbursement systems, she said. Other programs affected in different states included Head Start and child development block grants, she said.

California is expected to distribute $168.3 billion in federal funds and grants through the fiscal year that ends June 30. Officials are assessing what of that funding is at risk. Los Angeles officials were also scrambling to make sense of the order, which could affect housing vouchers and homeless assistance grants, according to internal emails.

Bonta said he is coordinating with other state officials, and believes that federal disaster relief funding for the recovery from L.A.’s devastating wildfires remains at risk under the order.

Gov. Gavin Newsom said he remained confident in the state’s partnership with the federal government to meet fire-related needs, but also said the directive on financial aid was “completely inconsistent with the law.”

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“It’s unconstitutional and I think any objective observer sees that,” he said.

The uproar began late Monday, after Matthew J. Vaeth, acting director of the Office of Management and Budget, issued a memo announcing a “temporary pause” on grants, loans and other financial assistance.

Vaeth wrote that voters had given Trump a “mandate to increase the impact of every federal taxpayer dollar,” and Trump needed to determine which spending by the government aligned with his agenda.

“Financial assistance should be dedicated to advancing Administration priorities, focusing taxpayer dollars to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending ‘wokeness’ and the weaponization of government, promoting efficiency in government, and Making America Healthy Again,” he wrote. “The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”

Democrats immediately began sounding alarms and calling the directive unconstitutional and far beyond the scope of Trump’s power as president, given that Congress, not the White House, generally appropriates funding.

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Senate Appropriations Vice Chair Patty Murray (D-Wash.) said the fact that “Congress holds the power of the purse” is “very clear in the Constitution.”

Sen. Jeff Merkley (D-Ore.), the top Democrat on the Senate Budget Committee, called the White House move “a constitutional crisis.” His committee is scheduled to vote Thursday on Trump’s nomination of Russ Vought as White House budget chief. Vought is the architect of the spending freeze.

The original memorandum ordered all federal agencies to conduct a “comprehensive analysis” of their spending to determine which of it is “consistent with the President’s policies” and the raft of executive orders that Trump has issued.

In the interim, it said, federal agencies must — to “the extent permissible under applicable laws” — pause all disbursements of funds or “other relevant agency activities” that may be covered by Trump’s orders, “including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,” Vaeth wrote.

The pause, the memo said, will give the Trump administration time to “determine the best uses of the funding” moving forward.

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Leading Republicans largely defended the move — suggesting it was a normal act for an incoming administration.

“I think that’s a normal practice at the beginning of administration, until they have an opportunity to review how the money is being spent,” Senate Majority Leader John Thune said Tuesday morning.

Democrats disagreed — issuing especially critical reactions prior to the White House’s clarifications.

Senate Minority Leader Charles E. Schumer (D-N.Y.) called the directive “outrageous” and “a dagger at the heart of the average American family in red states and blue states, in cities, in suburbs, in rural areas.”

Former House Speaker Nancy Pelosi (D-San Francisco) wrote that Trump’s “illegal scheme will raise costs, hurt working families and deny critical resources for Americans in need.” Rep. John Garamendi (D-Walnut Grove) said the order will cause Americans to suffer.

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A coalition including the American Public Health Assn. and the National Council of Nonprofits is independently challenging the memo in court, as well.

The order followed a separate directive by the Trump administration to halt a range of foreign aid.

Mark Peterson, a UCLA professor who studies public policy and political science, said the original memo was without precedent and left “extreme ambiguity as to what it affects and how it applies,” as well as its duration.

“Anything that has, from the point of view of the Trump administration, the aroma of dealing with equity or inclusion issues could be put under threat,” Peterson said — and “there’s so much misunderstanding about what those issues are.”

Times staff writers Pinho reported from Washington, Rector from San Francisco and Alpert Reyes from Los Angeles. Times staff writer Taryn Luna in Sacramento contributed to this report.

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Video: Minnesota and Illinois Sue Trump Administration Over ICE Deployments

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Video: Minnesota and Illinois Sue Trump Administration Over ICE Deployments

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Minnesota and Illinois Sue Trump Administration Over ICE Deployments

Minnesota and Illinois filed federal lawsuits against the Trump administration, claiming that the deployment of immigration agents to the Minneapolis and Chicago areas violated states’ rights.

This is, in essence, a federal invasion of the Twin Cities and Minnesota, and it must stop. We ask the courts to end the D.H.S. unlawful behavior in our state. The intimidation, the threats, the violence. We ask the courts to end the tactics on our places of worship, our schools, our courts, our marketplaces, our hospitals and even funeral homes.

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Minnesota and Illinois filed federal lawsuits against the Trump administration, claiming that the deployment of immigration agents to the Minneapolis and Chicago areas violated states’ rights.

By Jackeline Luna

January 12, 2026

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Rep Ro Khanna demands prosecution of ICE agent in Minneapolis fatal shooting

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Rep Ro Khanna demands prosecution of ICE agent in Minneapolis fatal shooting

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Rep. Ro Khanna, D-Calif., called for the arrest and prosecution of the ICE agent who fatally shot Renee Good in a residential neighborhood of Minneapolis, Minnesota on Jan. 7.

Khanna also urged Congress to back his legislation with Rep. Jasmine Crockett, D-Texas, to require ICE agents to wear body cameras, display visible identification, stop wearing masks during operations and be subject to independent oversight.

In a post shared on X, the former Obama administration official said: “I am calling for the arrest and prosecution of the ICE agent that shot and killed Renee Good.”

“I am also calling on Congress to support my bill with @JasmineForUS to force ICE agents to wear body cameras, not wear masks, have visible identification, and ensure ICE has independent oversight,” Khanna added.

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MINNESOTA BUREAU OF CRIMINAL APPREHENSION DROPS OUT OF ICE-INVOLVED SHOOTING INVESTIGATION

An ICE agent shot and killed the 37-year-old Minneapolis woman during a federal enforcement operation in south Minneapolis. Federal officials have said agents were attempting to make arrests when the woman tried to use her vehicle as a weapon against officers, prompting an ICE agent to fire in self-defense.

Good’s death sparked widespread protests in Minneapolis and across the U.S. as demonstrators called for changes to federal immigration enforcement.

Renee Nicole Good moments before she was shot and killed by a federal agent in Minneapolis.  (Obtained by Fox News)

Local officials, including Minneapolis Mayor Jacob Frey and Minnesota Governor Tim Walz, criticized the federal account of the incident and rejected the claim that the officer acted in self-defense. Minnesota has since sued the Trump administration, claiming the immigration enforcement surge in the state is “unlawful” and “unprecedented.”

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“What we are seeing right now is not normal immigration enforcement,” Frey said. “The scale is wildly disproportionate, and it has nothing to do with keeping people safe.”

The Trump administration pushed back sharply against the lawsuit, with the Department of Homeland Security (DHS) accusing Minnesota leaders of undermining public safety and obstructing federal law enforcement.

MINNESOTA SUES TRUMP ADMIN OVER SWEEPING IMMIGRATION RAIDS IN TWIN CITIES

Federal officials, including DHS Secretary Kristi Noem, maintained that the agent fired in self-defense.

Renee Good’s crashed car after the shooting. (Stephen Maturen/Getty Images)

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Noem critisized Democrats on Sunday amid an Illinois lawmaker’s push to impeach her following the deadly shooting.

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“These law enforcement officers are trained to be in situations that are dangerous, and they rely on that training each and every day to make the right decisions,” Noem said during “Sunday Morning Futures.” 

Fox News Digital’s Greg Wehner contributed to this report.

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Democrat-turned-Republican Gloria Romero announces run for lieutenant governor

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Democrat-turned-Republican Gloria Romero announces run for lieutenant governor

Gloria Romero, a former Democrat and state Senate Majority Leader, announced Monday she is running for lieutenant governor as part of a ticket with GOP gubernatorial candidate Steve Hilton, a former Fox News commentator.

“At the end of the day, it’s really about one-party rule in Sacramento. I’ve seen it. I left it,” Romero said in an interview. “We’ve got to make a change, otherwise we will never turn around on accountability or affordability and fight for working families like the Democrats once said the party stood for. Those days are gone. It’s a new day, and I’m proud to work alongside Steve in this exciting race to make California Golden again.”

Hilton, who has a long-standing political relationship with Romero, said her expertise in the state Capitol is among the reasons he selected her. Romero served in the state Senate and Assembly for about 12 years, including three as the state Senate’s first female majority leader.

“She’s been incredibly helpful already, helping me understand how Sacramento works and doesn’t work,” Hilton said. “When I’m the governor I will have to work with the legislature. And one of the most important things that I see as a real benefit from having Gloria there with me is that she’s not just been in the legislature, she’s led one of the chambers. She really understands how it works and still has relationships.”

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Other candidates running for lieutenant governor include Treasurer Fiona Ma, former Stockton Mayor Michael Tubbs and Josh Fryday, a member of Gov. Gavin Newsom’s cabinet, all Democrats, and state Sen. Brian Jones (R-Santee).

Romero was a lifelong Democrat, including co-chairing President Obama’s 2012 reelection campaign in California. But she began to break with her party over education reform, notably her support for school choice.

“Education is the key to the American dream, and yet my party was so beholden to the teachers union, the alphabet soup of power influencers in Sacramento,” she said.

Invoking the words of the late President Reagan, Romero said she didn’t leave the Democratic party, the party left her. She became a registered Republican in September 2024 after what she calls a “political coup” to oust President Biden as the Democratic nominee. She then endorsed President Trump and spoke at a rally supporting him near Coachella.

She said the lieutenant governor’s role is typically a sleepy perch for politicians as they bide their time to run for higher office.

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“It should not be that way,” Romero said, adding that the lieutenant governor’s role on the boards that oversee the UCs, Cal States and community college is a particularly good fit for her wheelhouse. “Education and turning around education, it’s in my blood, it’s in my dreams. It’s my passion.”

Unlike presidential elections, statewide contests do not feature running mates; each candidate must be elected on their own merits.

Hilton said Romero was the first member of his “golden ticket for California” and that he planned to roll out other statewide candidates who will join their effort.

“I know it hasn’t been done before. It’s not how things are normally done,” he said. “But right from the beginning, when I was thinking about my race for governor, one of the things that I really wanted to do was to put together a strong team, because turning around California is going to take a strong team.”

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