Politics
Federal judge blocks White House freeze on 'financial assistance' amid anger, confusion
WASHINGTON — 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.
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.”
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.
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.”
“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.
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.
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.
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.
Politics
Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns
NEWYou can now listen to Fox News articles!
A federal judge Friday temporarily blocked the Trump administration from stopping subsidies on childcare programs in five states, including Minnesota, amid allegations of fraud.
U.S. District Judge Arun Subramanian, a Biden appointee, didn’t rule on the legality of the funding freeze, but said the states had met the legal threshold to maintain the “status quo” on funding for at least two weeks while arguments continue.
On Tuesday, the U.S. Department of Health and Human Services (HHS) said it would withhold funds for programs in five Democratic states over fraud concerns.
The programs include the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant, all of which help needy families.
USDA IMMEDIATELY SUSPENDS ALL FEDERAL FUNDING TO MINNESOTA AMID FRAUD INVESTIGATION
On Tuesday, the U.S. Department of Health and Human Services said it would withhold funds for programs in five Democratic states over fraud concerns. (AP Photo/Jose Luis Magana, File)
“Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” HHS Deputy Secretary Jim O’Neill said in a statement on Tuesday.
The states, which include California, Colorado, Illinois, Minnesota and New York, argued in court filings that the federal government didn’t have the legal right to end the funds and that the new policy is creating “operational chaos” in the states.
U.S. District Judge Arun Subramanian at his nomination hearing in 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
In total, the states said they receive more than $10 billion in federal funding for the programs.
HHS said it had “reason to believe” that the programs were offering funds to people in the country illegally.
‘TIP OF THE ICEBERG’: SENATE REPUBLICANS PRESS GOV WALZ OVER MINNESOTA FRAUD SCANDAL
The table above shows the five states and their social safety net funding for various programs which are being withheld by the Trump administration over allegations of fraud. (AP Digital Embed)
New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.”
New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.” (Win McNamee/Getty Images)
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Fox News Digital has reached out to HHS for comment.
Politics
Washington National Opera is leaving the Kennedy Center in wake of Trump upset
In what might be the most decisive critique yet of President Trump’s remake of the Kennedy Center, the Washington National Opera’s board approved a resolution on Friday to leave the venue it has occupied since 1971.
“Today, the Washington National Opera announced its decision to seek an amicable early termination of its affiliation agreement with the Kennedy Center and resume operations as a fully independent nonprofit entity,” the company said in a statement to the Associated Press.
Roma Daravi, Kennedy Center’s vice president of public relations, described the relationship with Washington National Opera as “financially challenging.”
“After careful consideration, we have made the difficult decision to part ways with the WNO due to a financially challenging relationship,” Daravi said in a statement. “We believe this represents the best path forward for both organizations and enables us to make responsible choices that support the financial stability and long-term future of the Trump Kennedy Center.”
Kennedy Center President Ambassador Richard Grenell tweeted that the call was made by the Kennedy Center, writing that its leadership had “approached the Opera leadership last year with this idea and they began to be open to it.”
“Having an exclusive relationship has been extremely expensive and limiting in choice and variety,” Grenell wrote. “We have spent millions of dollars to support the Washington Opera’s exclusivity and yet they were still millions of dollars in the hole – and getting worse.”
WNO’s decision to vacate the Kennedy Center’s 2,364-seat Opera House comes amid a wave of artist cancellations that came after the venue’s board voted to rename the center the Donald J. Trump and the John F. Kennedy Memorial Center for the Performing Arts. New signage featuring Trump’s name went up on the building’s exterior just days after the vote while debate raged over whether an official name change could be made without congressional approval.
That same day, Rep. Joyce Beatty (D-Ohio) — an ex officio member of the board — wrote on social media that the vote was not unanimous and that she and others who might have voiced their dissent were muted on the call.
Grenell countered that ex officio members don’t get a vote.
Cancellations soon began to mount — as did Kennedy Center‘s rebukes against the artists who chose not to appear. Jazz drummer Chuck Redd pulled out of his annual Christmas Eve concert; jazz supergroup the Cookers nixed New Year’s Eve shows; New York-based Doug Varone and Dancers dropped out of April performances; and Grammy Award-winning banjo player Béla Fleck wrote on social media that he would no longer play at the venue in February.
WNO’s departure, however, represents a new level of artist defection. The company’s name is synonymous with the Kennedy Center and it has served as an artistic center of gravity for the complex since the building first opened.
Politics
AOC accuses Vance of believing ‘American people should be assassinated in the street’
NEWYou can now listen to Fox News articles!
Democratic Rep. Alexandria Ocasio-Cortez is leveling a stunning accusation at Vice President JD Vance amid the national furor over this week’s fatal shooting in Minnesota involving an ICE agent.
“I understand that Vice President Vance believes that shooting a young mother of three in the face three times is an acceptable America that he wants to live in, and I do not,” the four-term federal lawmaker from New York and progressive champion argued as she answered questions on Friday on Capitol Hill from Fox News and other news organizations.
Ocasio-Cortez spoke in the wake of Wednesday’s shooting death of 37-year-old Renee Nicole Good after she confronted ICE agents from inside her car in Minneapolis.
RENEE NICOLE GOOD PART OF ‘ICE WATCH’ GROUP, DHS SOURCES SAY
Members of law enforcement work the scene following a suspected shooting by an ICE agent during federal operations on January 7, 2026, in Minneapolis, Minnesota. (Stephen Maturen/Getty Images)
Video of the incident instantly went viral, and while Democrats have heavily criticized the shooting, the Trump administration is vocally defending the actions of the ICE agent.
HEAD HERE FOR LIVE FOX NEWS UPDATES ON THE ICE SHOOTING IN MINNESOTA
Vance, at a White House briefing on Thursday, charged that “this was an attack on federal law enforcement. This was an attack on law and order.”
“That woman was there to interfere with a legitimate law enforcement operation,” the vice president added. “The president stands with ICE, I stand with ICE, we stand with all of our law enforcement officers.”
And Vance claimed Good was “brainwashed” and suggested she was connected to a “broader, left-wing network.”
Federal sources told Fox News on Friday that Good, who was a mother of three, worked as a Minneapolis-based immigration activist serving as a member of “ICE Watch.”
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Ocasio-Cortez, in responding to Vance’s comments, said, “That is a fundamental difference between Vice President Vance and I. I do not believe that the American people should be assassinated in the street.”
But a spokesperson for the vice president, responding to Ocasio-Cortez’s accusation, told Fox News Digital, “On National Law Enforcement Appreciation Day, AOC made it clear she thinks that radical leftists should be able to mow down ICE officials in broad daylight. She should be ashamed of herself. The Vice President stands with ICE and the brave men and women of law enforcement, and so do the American people.”
-
Detroit, MI6 days ago2 hospitalized after shooting on Lodge Freeway in Detroit
-
Technology4 days agoPower bank feature creep is out of control
-
Dallas, TX5 days agoDefensive coordinator candidates who could improve Cowboys’ brutal secondary in 2026
-
Health6 days agoViral New Year reset routine is helping people adopt healthier habits
-
Iowa3 days agoPat McAfee praises Audi Crooks, plays hype song for Iowa State star
-
Nebraska3 days agoOregon State LB transfer Dexter Foster commits to Nebraska
-
Nebraska3 days agoNebraska-based pizza chain Godfather’s Pizza is set to open a new location in Queen Creek
-
Dallas, TX1 day agoAnti-ICE protest outside Dallas City Hall follows deadly shooting in Minneapolis