A federal judge temporarily blocked President Donald Trump’s attempt to freeze hundreds of billions of dollars in federal aid on Tuesday, just minutes before it was set to take effect, after the directive sparked widespread disruption and fears of service interruptions for millions of Americans.
US District Judge Loren AliKhan halted the spending freeze at 5 p.m. ET (2200 GMT), following arguments from advocacy groups who warned that the measure would severely impact thousands of federal grant programs, including healthcare and infrastructure projects. The court is set to revisit the case on Monday.
Trump’s order was the latest in his broader push to restructure the federal government, which has already included halting foreign aid, freezing hiring, and shutting down diversity initiatives across multiple agencies.
On the same day, his administration also offered buyouts to federal employees as part of efforts to reduce the government workforce.
Democrats condemned the aid freeze as an unconstitutional move that undermined Congress’ control over federal spending, warning that it was already affecting payments to doctors and preschool teachers.
Republicans, however, defended the directive as a step toward fulfilling Trump’s promise to curb the $6.75 trillion federal budget.
The administration maintained that essential benefit programs would not be impacted. However, Democratic Senator Ron Wyden said his office had confirmed that doctors in all 50 states were unable to access Medicaid payments, affecting the healthcare coverage of 70 million low-income Americans.
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White House press secretary Karoline Leavitt addressed concerns on X, acknowledging an issue with the Medicaid portal but insisting that no payments had been disrupted. She stated that the website would be restored soon.
Healthcare industry officials warned that even a temporary freeze could have lasting consequences.
“If the federal government stops pushing funds out to state Medicaid contractors, the result would be a complete debacle, with Medicaid providers going out of business,” said Sara Ratner of healthcare company NOMI Health.
The White House defended the freeze as necessary to ensure that federal aid programmes align with Trump’s policy agenda, including executive orders aimed at ending diversity, equity, and inclusion initiatives.
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