D.C. and Maryland, along with 21 other attorneys general, filed a lawsuit against the Trump administration after a memo ordered all federal agencies to stop spending money on grants and loans. The attorneys general argued that the order was unconstitutional and would have catastrophic consequences for law enforcement groups, disaster relief funds, and violence shelters. The OMB memo, issued by acting director Matthew Vaeth, aimed to ensure federal resources are dedicated to advancing administration priorities. The freeze on funding was put on hold by a district judge following a lawsuit brought by nonprofits.
The legal advocacy group Democracy Forward filed the lawsuit arguing that the funding freeze would have devastating consequences on grant recipients across the country. The memo was criticized for its lack of legal basis or rationale, and for targeting programs like Medicaid. The OMB later clarified that exemptions would be made for programs like SNAP, social security, and student loans.
Press Secretary Karoline Leavitt defended the administration’s justification for the freeze, stating it was to ensure that funds were not conflicting with executive orders. There was confusion surrounding Medicaid’s online portal outage, but the White House confirmed that payments were not affected. Nonprofit programs, such as preschools, were on alert and expressed concerns over how they may be impacted. The lawsuit against the administration was joined by all 22 U.S. states with Democratic attorneys general, as well as Washington, D.C.
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