President Donald Trump's budget office on Wednesday rescinded an order freezing spending on federal grants, less than a day after Massachusetts and other states sued and a federal judge intervened.
Federal aid is a major source of revenue for states. According to Pew Charitable Trusts, federal grants represented 36.4% of total revenue for state governments in fiscal year 2022.
A judge temporarily blocked the freeze, which the White House says doesn't affect individuals, but federal payment portals are glitching.
The funding freeze "violates the separation of powers," Massachusetts Attorney General Andrea Campbell said, as a colleague from California called it "arbitrary and capricious."
Massachusetts is joining in legal action as President Trump's administration begins a review of spending that could freeze trillions of government dollars.
The White House is claiming victory in a showdown with Colombia over accepting flights of deported migrants from the U.S. on Sunday, hours after President Donald Trump threatened steep tariffs on imports and other sanctions on the longtime U.
The Republican has only been back in office for eight days, and the whirlwind has a touch of the familiar about it.
White House press secretary Karoline Leavitt told ABC News chief White House correspondent Mary Bruce Tuesday that every single illegal
By Tuesday afternoon, a federal judge had put the order on a brief stay while challenges to the administration work their way through the courts. But the controversy was far from over.
The action may spark organizations to reach out to individual donors in order to lessen their reliance on government monies.
As states and local governments grapple with a federal grant freeze, Springfield, Massachusetts, is still hoping to put recently-awarded grant money to work — paving the way for a new fleet of electric buses.
They could have at least a few more days to figure out the landscape. A federal judge in Washington, D.C. temporarily blocked the proposed freeze late Tuesday afternoon, according to POLITICO. The judge's order is due to expire at 5 p.