The Trump administration has announced a halt on federal grants and loans starting today (Jan. 28) at 4 p.m. CT.
But minutes before the freeze took effect, a federal judge has stepped in to halt the Trump administration’s freeze on federal grants and loans.
U.S. District Judge Loren L. AliKhan issued the temporary block on Tuesday afternoon. The stay keeps the freeze on hold until Monday (Feb. 3), providing a brief but critical window for review.
The freeze was set to disrupt healthcare research and education programs, triggering widespread concern among organizations and individuals who depend on federal funding. Programs like student loans, and scholarships will remain unaffected, but other vital initiatives are at risk, according to the Democratic National Committee.
What the freeze could impact:
- Medicaid
- School breakfast and lunch programs
- Section 8 rental assistance
- Title I education grants
- TANF (Temporary Assistance for Needy Families)
- State grants for child care
- Head Start
- Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
- Department of Housing and Urban Development’s Community Development Block Grant Program
- EPA grants for clean water infrastructure
The announcement, made just a day ago, has left agencies scrambling to assess the fallout. Illinois Gov. JB Pritzker criticized the move, calling it unconstitutional and harmful to millions of working families, children, and seniors.
“The US Constitution does not grant the President this unilateral authority,” Pritzker stated on social media. “In Illinois, we will stand against unlawful actions that would harm millions of working families, children, and seniors.”
The US Constitution does not grant the President this unilateral authority.
In Illinois, we will stand against unlawful actions that would harm millions of working families, children, and seniors. https://t.co/MOt4fnlzl7
— Governor JB Pritzker (@GovPritzker) January 28, 2025
Sen. Dick Durbin of Illinois also condemned the decision, highlighting its potential impact on critical research. “House Republicans are hobnobbing at Trump’s golf resort in Miami while the President plans to shut down research funding on childhood cancer, Alzheimer’s, diabetes, & so much more at 5PM,” Durbin wrote. “Members should immediately return to DC to work w/Dems to undo this threat created by Trump.”
House Republicans are hobnobbing at Trump’s golf resort in Miami while the President plans to shut down research funding on childhood cancer, Alzheimer’s, diabetes, & so much more at 5PM. Members should immediately return to DC to work w/Dems to undo this threat created by Trump.
— Senator Dick Durbin (@SenatorDurbin) January 28, 2025
Other local leaders an organizations have also issued statements about Trump’s freeze before Judge AliKhan blocked the measure:
From U.S. Rep Danny K. Davis:
“President Trump’s decision to strip Chicago of 50 police officers is an affront to our city’s efforts to build safer communities through smart, community-based policing,” said Congressman Davis. “These cuts endanger public safety while undermining trust between law enforcement and the people they serve.”
The Congressman also condemned the administration’s broader funding freeze, which will have devastating consequences nationwide.
“These budget cuts are something that I’ve never seen for over 45 years in the legislative process, but we can come together and make things better, not just for those areas, but for the entire city. But I want to applaud the first responders, the firefighters because they have done a tremendous job.”
Programs directly impacted include:
- Community Health Centers: Critical federal funding supporting over 30 million low-income patients is frozen, creating chaos for those relying on essential healthcare services.
- Public Safety Grants: Freezing COPS and Byrne Justice Assistance grants will significantly hinder crime prevention and reentry programs, leaving communities more vulnerable.
- Education and Nutrition Assistance: Key programs like Title I for low-income students, IDEA for children with disabilities, and SNAP benefits face severe disruptions, further increasing hardships for working families.
- Small businesses: The Small Business Administration will have to halt loans to small businesses—including those in disaster ravaged communities in North Carolina, Texas, and Florida.
“From our schools to our streets, these reckless budget cuts undermine the core services that Chicago families depend on every day,” said Davis. “This administration’s unlawful and short-sighted decisions are an attack on the American people, and they disproportionately harm cities like ours.”
Congressman Davis emphasized the urgent need to restore funding and reaffirmed his commitment to fighting for Chicago’s communities. “We need a budget that prioritizes people over politics and protects public safety, education, and healthcare,” he added.
From the Health and Human Services Coalition of Illinois:
Statement on OMB Memo freezing of Federal Funds to nonprofits
The Health and Human Services Coalition of Illinois, collectively representing thousands of health and human service organizations in our state, is devastated to learn about the complete federal funding freeze of grants disbursed to nonprofit organizations, as well as state and local governments. This impacts vital services such as housing, medicalcare, educational programs, childcare, shelters for homeless youth, and many others.
This action will cause irreversible harm to the lives and livelihoods of both the people who depend on these servicesand the health and human service workers who have dedicated their lives to delivering them. It is particularly carelessto halt this funding with no warning, when end of month paychecks are issued and rent is due. More than 500,000 jobs could be impacted, creating widespread financial instability among human service workers and their families.
In Illinois, we have unique insight into how devastating this type of action can be. We have lived through a horrific budget impasse, the impacts of which are still being felt in our communities.
We know how easy it is to dismantle health and human service programs and how hard it is to rebuild them.
We are united in putting our communities first. This freeze must be rolled back immediately.
The Associated Press contributed to this report.