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US judge temporarily blocks Trump’s freeze on federal grants and loans
A US judge temporarily halted President Donald Trump’s order to freeze hundreds of billions of dollars in federal grants and loans, minutes before it was set to come into effect on Tuesday.
Judge Loren AliKhan’s order to pause the plan until next Monday at 17:00 EST (22:00 GMT) came in response to a lawsuit filed earlier in the day by a group of organisations representing grant recipients.
The lawsuit claims the White House’s temporary freezing of already approved funding violates the law.
In the hours before the order was due to take effect, there was widespread confusion about which agencies and programmes would be impacted.
The acting head of the White House budget office had instructed agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance”.
It said the move was intended to give the new administration time to assess what grants and loans were in step with their agenda.
White House Press Secretary Karoline Leavitt said Trump’s plan to pause billions of dollars in US government funding was about being “good stewards of tax dollars”.
Speaking to reporters in her first ever briefing, she said the pause in funding would allow governments to cut back spending for “woke” gender issues and diversity programmes.
But it prompted confusion, as well as anger from opposition figures, on Tuesday as those who receive federal loans and grants – such as non-profits and research organisations – reckoned with the reality of swiftly losing funding.
Judge AliKhan on Tuesday said she was issuing a brief stay that would “preserve the status quo” until she can hold an oral argument, now set for Monday morning.
The White House directive could have impacted billions of dollars meant for federal programmes, from disaster relief to cancer research.
In a post on X, Diane Yentel, the president of the National Council of Nonprofits, the organisation that brought the lawsuit, celebrated the ruling.
“Our lawsuit was successful – the US district court is blocking OMB (Office of Management and Budget) from moving forward on its reckless plan to halt federal funding,” she wrote.
In the lawsuit, her organisation wrote that Trump’s order seeks to “eradicate essentially all federal grant programs”.
It argues that Trump’s order is “devoid of any legal basis or the barest rationale” and will have ripple effects throughout the entire United States and beyond.
This is separate from an action by a coalition of Democratic states who filed a lawsuit later on Tuesday to block the order, calling it unconstitutional.
Stephen Miller, the White House’s deputy chief of staff, also defended the directive before the judge’s decision was announced, telling reporters that this would allow the government to get “credit control”.
“It does not impact any federal programmes that Americans rely on,” he said, answering a question about whether “Meals on Wheels” food delivery programme would be affected.
On Tuesday, several states reported issues accessing funds through Medicaid, a government health insurance programme for low-income people. The White House later said the programme would not be affected and that the problem would be resolved soon.
It also said Social Security benefits would not be affected, nor would any programme “that provides direct benefits to individuals”, including Supplemental Nutrition Assistance Program, known as SNAP or food stamps.
In a letter to the White House, top Democrats expressed “extreme alarm” about the plan to pause funding.
“The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country,” wrote Washington Senator Patty Murray and Connecticut Congresswoman Rosa DeLauro.
Democratic minority leader of the US Senate, Chuck Schumer, said the move would cause missed payrolls and rent payments, and cause “chaos”.
[BBC]
Latest News
Navy intercepts 02 narcotics-laden trawlers with 11 suspects in southern seas
Building on its success in seizing major narcotic stocks in 2025, the Navy continued to support the “A Nation United” National Mission in 2026. In continuation of these efforts, during an
operation conducted on the high seas south of Sri Lanka, the Navy apprehended eleven (11) suspects aboard two local multi-day fishing trawlers suspected of drug smuggling.
Based on shared information, by the Sri Lanka Navy and Police, this special operation was conducted off the southern coast, deploying the Navy‟s Offshore Patrol Vessels. The operation
resulted in the interception of a multi-day fishing trawler suspected of smuggling narcotics, and the apprehension of five (05) suspects on board.
During further operations in the same area, naval units seized another multi-day fishing trawler (01), along with communication equipment and six (06) additional suspects, also believed to be involved in drug smuggling.
This morning (25 Jan 26), the two intercepted fishing trawlers, along with fourteen (14) sacks laden with suspected narcotics and the suspects, were brought to the Dikovita Fisheries Harbour.
An expert examination by the Police Narcotic Bureau confirmed that the fourteen (14) sacks contained more than 184 kilograms of heroin and over 112 kilograms of ‘Ice’ (crystal methamphetamine).
The Deputy Minister of Defence, Major General (Retd) Aruna Jayasekara, the Commander of the Navy, Vice Admiral Kanchana Banagoda, and the Inspector General of Police, Priyantha Weerasuriya, inspected the narcotics at the Dikovita harbour.
The Deputy Minister of Defence said that the current administration has initiated several projects for national development. As a flagship initiative, under the directives and guidance of the President, and under the supervision of the
Ministry of Defence, well-coordinated anti-narcotic raids have been launched.
This effort, part of “A Nation United” National Mission, involves the tri-forces, police, and all intelligence agencies working together under a coordinated plan to ensure that drug smugglers have no opportunity to bring narcotics into the country, he opined. He further stated that despite the national disaster situation, the state machinery, including the tri-forces, the police, and the public at large, remains united in rebuilding the nation, no room will be left for drug trafficking, which poses a severe threat to national security and public safety. Those
who engage in or support drug trafficking, under the cover of fishing activities, will find no escape, he added.
The Deputy Minister also reaffirmed that the tri-forces, police, and all law enforcement agencies are fully committed to their duty of suppressing this menace.
The Deputy Minister of Defence reported that, throughout 2025, a series of highly successful operations were conducted leading to numerous arrests. This was achieved through close coordination and mutual cooperation among the tri-services, the police, the Special Task Force, Police Narcotics Bureau, local law enforcement and international agencies. He noted that this
same spirit of cooperation and commitment has continued into 2026, resulting in the seizure of a large stockpile of drugs.
On behalf of the Honourable President, he extended gratitude to all who contributed to these efforts, specifically acknowledging the Commander of the Navy, the Inspector General of Police, the Police Narcotic Bureau, and the crews of the Navy’s Offshore
Patrol Vessels.
Moreover, the Deputy Minister declared that drug smuggling has become a national crisis, fueled by youth involvement and social crime. With borders secured under the “Nation United” National Mission, he warned traffickers to cease operations and urged users to abandon the destructive habit.
The Deputy Minister urged the public to report suspected drug smugglers to law enforcement via the hotlines 1818 or 1997 and also commended the role of media institutions and journalists in raising public awareness about the dangers of narcotics through responsible reporting.
Meanwhile, the two (02) multi-day fishing trawlers, along with a haul of narcotics, eleven (11) suspects, and communication equipment, were handed over to the Police Narcotic Bureau for
further investigation and legal proceedings.
Latest News
U19 World Cup: Japan defeat Tanzania by nine wickets
Tanzania 131 in 38.3 overs (Acrey Pascal 55; Nihar Parmar 4-30, Nikhil Pol 3-23) lost to Japan 136/1 in 28.2 overs (Nihar Parmar 53*, Taylor Waugh 47) by nine wickets
[Cricbuzz]
Latest News
U19 World Cup: Ambrish’s four-fer powers India to third straight win
New Zealand 135 in 36.2 overs (RS Ambrish 4-29, Henil Patel 3-23) lost to India 130/3 in 13.3 overs (Vaibhav Suryavanshi 40, Ayush Mhatre 53) by 7 wickets [DLS Method]
[Cricbuzz]
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