Donald Trump’s federal funding freeze blocked by US District Judge Loren AliKhan as trillions hang in balance

After President Donald Trump issued a mass federal funding freeze that would have seen trillions held back from agencies, a US judge has blocked the move minutes before it came into effect, halting the Republican administration.

Officials in Washington DC described the sudden freeze as “chaos” after a vague order was issued by the White House, with little detail to ascertain which groups would and wouldn’t be affected by the sudden freezing of federal funds.

The order, which was set to come into effect from Tuesday, 5pm Eastern Time, could have seen trillions withheld from agencies that work across healthcare, schools, housing, aid (both domestic and foreign), research and government grants.

As agencies panicked, and officials scrambled to provide further detail, US District Judge Loren AliKhan stopped Mr Trump in his tracks.

In a lawsuit filed by the National Council of Non-profits and the American Public Health Association, the groups requested a restraining order that would block the memo from coming into effect from 5pm Tuesday.

“The Memo fails to explain the source of (the Office of Management and Budget’s) purported legal authority to gut every program in the federal government,” the lawsuit states.

Judge Alikhan’s block has halted the freeze until at least Monday, February 3.

Diane Yentel, president of the National Council of Non-profits, celebrated the court block.

“Our lawsuit was successful - the US district court is blocking OMB from moving forward on its reckless plan to halt federal funding,” she wrote on X.

White House attempts to clarify after memo sparks chaos

White House Press Secretary Karoline Leavitt attempted to hose down concern in her maiden briefing, saying: “This is not a blanket pause on federal assistance and grant programs from the Trump administration.”

Ms Leavitt said the Trump administration would review funding, and restore the flow of funds if they felt it was required.

“If they feel that programs are necessary and in line with the president’s agenda, then the Office of Management and Budget will review those policies,” Ms Leavitt said.

Ukraine scrambles for answers on humanitarian aid

Ukraine President Volodymyr Zelenski has instructed officials to urgently ascertain the level of humanitarian aid that will be halted as part of Mr Trump’s planned federal funding freeze.

“Today I instructed government officials to report on those US support programmes that are currently suspended,” he said on Tuesday evening, adding “These are humanitarian programmes”.

“There are many projects. We will determine which of them are critical and need solutions now,” Zelenski said.

“We can provide part of this funding through our public finances, and we will discuss some of it with Europeans and Americans.”

US agencies issue frantic updates on funding freeze

In the wake of what has been described as “destructive chaos”, United States agencies are updating Americans as they seek clarity over the future of their federal funding.

The Department of Defence has clarified it is not pausing contracts, however, flagged it may stop funding things that

“Contrary to certain media accounts, the Department of Defense has not paused contract awards. The Department continues to award new contracts to fulfill validated mission needs,” the agency said in a statement.

“While we are not aware of any specific contracts or other activities affected, it is possible that activities may be paused if they are determined to fall within the bounds of the guidance,” The Pentagon said.

Federal Student Aid said: “We continue to award and disburse federal student aid,” in a statement posted to X.

Meals on Wheels America said they are trying to determine how the directives of this memo may impact millions of “the most vulnerable seniors” in the United States and the local providers who serve them.

“The memo and further correspondence from OMB have created uncertainty and fear in our providers across the county,” Meals on Wheels America president Ellie Hollander said.

“The current lack of clarity and uncertainty is creating chaos for local Meals on Wheels providers.

“The possibility of a service interruption unfortunately means seniors may panic not knowing where their next meals will come from.

More to come...