Editor's Note: This story was updated Feb. 3.
On Feb. 3, a U.S.District Court judge granted a temporary restraining order on the White House's plan to freeze grants and other financial assistance.
U.S. District Judge Loren AliKhan wrote that the Office of Management and Budget's (OMB's) recent actions "potentially run roughshod over a 'bulwark of the Constitution' by interfering with Congress’ appropriation of federal funds."
AliKhan also wrote that the harms caused by the freeze are "potentially catastrophic."
The court ruling came in response to a suit filed by Democracy Forward on behalf of the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE.
"The declarations and evidence presented by plaintiffs paint a stark picture of nationwide panic in the wake of the funding freeze," AliKhan said. "Organizations with every conceivable mission—health care, scientific research, emergency shelters, and more—were shut out of funding portals or denied critical resources beginning on Jan. 28."
The court has preserved key funding assistance at least for now until there are more legal challenges or actions from Donald Trump's White House, which has been seeking to reshape federal spending.
“Nonprofits across the country have been left in limbo by the Trump administration’s callous actions. Now, they finally have some needed clarity and can continue to do their essential work,” said Diane Yentel, chief executive of the National Council of Nonprofits. “We are determined to continue to do all we can to prevent this administration’s reckless attempt to halt funding that would put people’s lives and safety at risk, from pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence, and closing suicide hotlines.”
Affordable housing advocates were among those working to assess the impact of a funding freeze last week.
After some early confusion, White House officials said that the funding suspension will not affect Section 8 rental assistance. However, many other programs were potentially at risk, including public housing funds and Community Development Block Grants.
After backlash from nonprofits and lawmakers, the OMB rescinded its controversial memo that called for suspending funding. However, White House press secretary Karoline Leavitt soon stated that there OMB rescinded the memo but not the federal funding freeze, adding to the chaos.
Federal agencies were also given a Feb. 7 deadline to provide information about “any program that has funding or activities planned through March 15.” A long list of Department of Housing and Urban Development programs were on the 52-page notice, including project-based rental assistance, Community Development Block Grants, the Housing Trust Fund, the public housing operating fund, the Green and Resilient Retrofit program, and various mortgage insurance programs.
Many of the initiatives that will come under review provide vital assistance to help seniors, low-income families, and other vulnerable Americans stay housed, fed, and warm.
One industry veteran called the situation “a mess.”
Several groups, including NLIHC and the National Alliance to End Homelessness, are urging their networks to contact members of Congress and share what the disruption in funding would mean to people.
Sen. Patty Murray (D-Wash.) and Rep. Rosa L. DeLauro (D-Conn.), leaders on the Senate and House appropriations committees, sent a Jan. 27 letter to Matthew J. Vaeth, acting director of the OMB.
“The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country,” they said. “We write today to urge you in the strongest possible terms to uphold the law and the Constitution and ensure all federal resources are delivered in accordance with the law.”
The lawmakers continued that the “this administration’s actions will have far-reaching consequences for nearly all federal programs and activities, putting the financial security of our families, our national security, and the success of our country at risk.”