Trump administration pause on federal grants, loans blocked: Everything you need to know

A federal judge is temporarily blocking the Trump administration’s pause on all federal grants and loans until Monday. 

Leaders and officials in the area are reacting to the news.

What we know:

At around 8:30 a.m. Tueday, President Trump announced his administration would pause federal loans and grants as they review spending.

The National Council of Nonprofits, public health leaders and small businesses filed a lawsuit Tuesday against the White House Office of Management and Budget from pausing all agency grants and loans.

"Between now and Monday, more information will be shared with the judge in order to have a more extensive hearing of the facts of the case. Our hope is that the freeze is stopped entirely, but at least nonprofits will now have a few more days to figure out if they are included and what, if anything, they can do if their funding is indeed frozen starting on Monday," said Rick Cohen, Chief Communications Officer/COO of National Council of Nonprofits.

On Tuesday afternoon, White House press secretary Karoline Leavitt said Medicare, Social Security and programs providing direct benefits to individuals such as the Supplemental Nutrition Assistance Program (SNAP) will not be affected. She defended a pause in federal funding and said, "The past four years we’ve seen the Biden administration spend money like drunken sailors. It’s a big reason we’ve had an inflation crisis in this country and its incumbent upon this administration to make sure again every penny is being accounted for honestly."

Cohen tells FOX 29 many nonprofits are still working to hear from federal agencies whether they will be affected by the freeze in federal aid funding.

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The latest on President Trump's attempt to pause federal loans and grants as his administration reviews spending, plus other latest details from the administration on Tuesday.

Local perspective:

Philadelphia leaders react

Philadelphia City Councilman Curtis Jones, Jr. who represents the 4th District said the freeze would have a dramatic ripple effect on communities, raising concerns about educational programs such as Head Start and free breakfast and lunch at schools.

"He has been on a mission to be cruel and unusual with his policy," said Councilmember Jones of President Trump. "Young people depended on those predictable meals, and when they are not there, some of them go hungry." 

New Jersey leaders react

Democratic Attorneys General across the country are calling President Trump’s latest order unconstitutional as they argue the federal funds were legally appropriated by Congress.

During a virtual call, New Jersey Attorney General Matthew Platkin said he’s confident the federal courts will agree with them. "

"Presidents have power, but they are not unlimited," said Democratic AG Platkin. "We have the power to standup and protect them and speak on their behalf. That is what we are doing and I’m confident we will be successful in that effort."

Pennsylvania leaders react

Before the federal ruling on Tuesday evening, several elected leaders in Pennsylvania provided reactionary statements.

U.S. Senator Dave McCormick said, "President Trump campaigned on getting our spending under control. I support that objective, and as a former CEO, I know that sometimes you need to press pause to make sure spending lines up with your strategic plan. At the same time, I am hearing from constituents about the Administration’s spending pause and am closely monitoring what it means for Pennsylvanians. I understand from the White House that this pause will not affect direct benefits to Americans and that exceptions may be granted. I’m working to get more information about that process. If there are problems, I want to get them fixed, fast." 

U.S. Senator John Fetterman said, "I am closely monitoring the repercussions in PA as a result of the federal funding pause. My office just received calls from over a dozen PA organizations, including one that serves both 

Montgomery County Board of Commissioners Neil Makhija and Jamila Winder provided a statement which said in part: 

"With this directive, the Trump Administration has frozen $22 million in Housing and Urban Development (HUD) grants for Montgomery County residents, effecting programs from homeowner repair and lead remediation work to rental assistance and emergency shelter operations. The order has also paused $188 million in CARBON funding to the Southeastern PA region, ceasing projects related to County's parks and 100 miles of trails for our residents. The Department of Public Safety no longer has access to $11 million in federal funding for its anti-terrorism task force, reducing our local preparedness and training against violent events. Making such a short-sighted decision without notifying local governments in advance adds to the harmful effect. Local governments, whose budgets for the year have already been adopted, cannot plan for this sudden decrease in funding. In short, the Trump administration's actions are not only jeopardizing the well-being of our residents but are being carried out in a way that maximizes disruption and chaos."

Delaware leaders react

In Delaware, U.S. Senators Chris Coons and Lisa Blunt Rochester and Congresswoman Sarah McBride released a joint statement which said in part:

"We are hearing throughout the day from leaders and constituents across Delaware in state and local government, education, and the non-profit sectors concerned about this directive and are working to address their concerns. We have spoken with Attorney General Jennings about her prompt legal action against this unconstitutional directive and are grateful for her partnership. President Trump must immediately repeal this disastrous policy and return federal funding to working order. We will not stand by while our state suffers."

The Source: The information in this story is from the Trump administration, and state leaders.

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