With just minutes before President Donald Trump's pause on federal funding was set to take effect, a federal judge temporarily blocked the push. But how long does the block last and what happens next?
The Trump administration's plan plunged the U.S. government into panic and confusion Tuesday, and set the stage for a constitutional clash over control of taxpayer money.
Still, the judge's ruling comes with a catch.
The order from U.S. District Judge Loren L. AliKhan lasts until Monday afternoon and applies only to existing programs.
Here's what to know:
What was the funding freeze?
The full scope of the administration’s review was spelled out in a 51-page spreadsheet sent to federal agencies and viewed by The Associated Press. Each line was a different government initiative, from pool safety to tribal workforce development to special education.
Politics
Officials were directed to answer a series of yes or no questions for every item on the list, including “does this program promote gender ideology?” or “does this program promote or support in any way abortion?” Responses were due by Feb. 7.
Trillions of dollars are potentially under review. Grants that have been awarded but not spent are also supposed to be halted if they might violate one of Trump’s executive orders.
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly Chicago Catch-Up newsletter.
“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,” wrote Matthew Vaeth, the acting director of the Office of Management and Budget, in a memo distributed Monday.
Vaeth wrote that “each agency must complete a comprehensive analysis of all of their Federal financial assistance programs to identify programs, projects, and activities that may be implicated by any of the President’s executive orders.” He also wrote that the pause should be implemented “to the extent permissible under applicable law.”
Prior to the judge's ruling, the pause on grants and loans was scheduled to take effect at 4 p.m. CT, just one day after agencies were informed of the decision.
Why was there confusion?
Administration officials said Trump's decision to halt loans and grants — a financial lifeline for local governments, schools and nonprofit organizations around the country — was necessary to ensure that spending complies with recent executive orders.
But a vaguely worded memo issued by the Office of Management and Budget, combined with incomplete answers from the White House throughout the day, left lawmakers, public officials and average Americans struggling to figure out what programs would be affected by the pause. Even temporary interruptions in funding could cause layoffs or delays in public services.
Trump administration officials said programs that provide direct assistance to Americans would not be affected, such as Medicare, Medicaid, Social Security, student loans and food stamps. They also defended the funding pause, saying Trump was following through on his promise to turn Washington upside down if elected to a second term.
What was the impact of the planned freeze so far?
The effects were being felt far from the nation’s capital. Organizations like Meals on Wheels, which receives federal money to deliver food to the elderly, were worried about getting cut off.
“The lack of clarity and uncertainty right now is creating chaos,” spokeswoman Jenny Young said. She added that “seniors may panic not knowing where their next meals will come from.”
The National Science Foundation postponed this week’s panels for reviewing grant applications. Officials in Prichard, Alabama, feared they wouldn’t receive infrastructure funding to fix their leaking drinking water system. Republican leaders in Louisiana said they were “seeking clarity” to ensure nothing was “jeopardizing financial stability of the state.”
“Trump’s actions would wreak havoc in red and blue communities everywhere,” said Sen. Patty Murray of Washington, the top Democrat on the Senate Appropriations Committee. “We are talking about our small towns, our cities, our school districts.”
Democrats described the Trump administration’s decision as capricious and illegal. They argued that the president had no right to unilaterally stop spending money appropriated by Congress.
New York Attorney General Letitia James planned to ask a Manhattan federal court to block the funding pause.
“There is no question this policy is reckless, dangerous, illegal and unconstitutional,” she said.
Separately, a group of nonprofit organizations filed a lawsuit in Washington saying that the funding pause is “devoid of any legal basis or the barest rationale.”
The issue dominated the first briefing held by White House press secretary Karoline Leavitt. She said the administration was trying to be “good stewards” of public money by making sure that there was “no more funding for transgenderism and wokeness.”
She denied that Trump was deliberately challenging Congress to establish his dominance over the federal budget.
“He’s just trying to ensure that the tax money going out the door in this very bankrupt city actually aligns with the will and the priorities of the American people,” she said.
The Environmental Protection Agency confirmed that it would implement the pause to “align federal spending and action with the will of the American people as expressed through President Trump’s priorities.” The Department of Energy also said it was conducting a review of its spending.
"This unconstitutional pause in funding will have a devastating impact on the public safety, prosperity and quality of life, of crime in progress. Democrats and Republicans alike will be negatively impacted by this pause in funding," Illinois Attorney General Kwame Raoul said Tuesday.
Fears about interruption in government services were exacerbated as states reported problems with the Medicaid funding portal, where officials request reimbursement for providing healthcare to poor residents. A spokesman for Illinois Gov. J.B. Pritzker’s office said the state’s agencies reported issues accessing the website used to request disbursement for Medicaid payments earlier Tuesday.
Democrats condemned the Trump administration, connecting the issue to the funding pause.
“Donald Trump's administration is lying to you," Pritzker said. "The White House's attempt to walk back what they did today does not match what we saw on the ground. They assured us that Medicaid would not be affected. That was a lie.”
But Leavitt said the portal would be back online soon.
“We have confirmed no payments have been affected — they are still being processed and sent," she posted on social media.
What happens next?
Raoul, along with attorney generals from several other states, said they planned to fight the funding freeze.
"Let's be clear. Jan. 20 was an inauguration, not a coronation. Congress is given the power to appropriate the funding," Raoul said. "The executive branch cannot unilaterally disregard those appropriations passed by the separate and equal house of government. We will collectively fight this unconstitutional mandate."
Minnesota Attorney General Keith Ellison also said he would be joining other Democratic attorneys general in suing for an injunction to block the president’s action.
Ellison, who’s also a former congressman, said Trump’s order is unconstitutional and oversteps his legal authority.
Pritzker made similar remarks.
“What the President is trying to do is illegal…I know these are challenging times, and the Trump administration is trying to confuse the American people," Pritzker said. "That's why it's so important that we speak plainly.”