Federal funds freeze halted by court order; Michigan programs like Medicaid and Head Start spared immediate disruption.
Court Halts Trump Administration’s Controversial Funds Freeze
LANSING, Mich. — A federal judge issued a temporary restraining order Tuesday, halting a White House directive that sought to freeze nearly all federal grants, loans, and aid. The freeze, announced Monday by the Office of Management and Budget (OMB), faced swift legal challenges from 22 attorneys general, including Michigan’s Dana Nessel, and nonprofit organizations who called the order reckless and unlawful.
The ruling comes as Attorney General Dana Nessel announced her office’s intent to file litigation to protect critical programs in Michigan. “We are already seeing reports of impacts to essential services such as Medicaid and Head Start,” Nessel said in a statement. “This absurd and unprecedented attack on vital programs cannot stand.”
Broad Impacts Across Michigan Programs
The proposed freeze threatened to disrupt key programs relied upon by millions of Michiganders, including:
- Medicaid reimbursements
- Head Start early education services
- Meals on Wheels and school meal programs
- Disaster aid through FEMA
- Veterans Affairs support for homeless veterans
Federal funding portals for programs like Medicaid were reportedly shut down, leaving states and recipients in a state of uncertainty.
Legal and Political Backlash
Tuesday’s restraining order, issued by U.S. District Judge Loren AliKhan, temporarily paused the freeze. The move was part of a lawsuit filed by nonprofits including the National Council of Nonprofits and the American Public Health Association, who argued the freeze violated federal law and the First Amendment.
Meanwhile, attorneys general from Michigan and 21 other states joined a parallel suit in Rhode Island federal court. The states argue the freeze violates the Administrative Procedure Act and the constitutional separation of powers, which grants Congress—not the president—the authority to allocate federal funds.
Uncertainty Sparks Concern Across States
Despite the White House’s assurance that the freeze wouldn’t affect individual benefits like Social Security and Medicare, critics say the vague language has created widespread confusion.
“The ambiguity, the lack of precision is by design,” said California Attorney General Rob Bonta. “This chaos has swept through services the federal government funds, jeopardizing health care, disaster aid, and housing for millions.”
Michigan’s Efforts to Protect Residents
In Michigan, officials worked urgently to assess the impact of the freeze. Rep. Dana Scholten, who represents West Michigan, highlighted potential disruptions to federally funded health centers, school meal programs, and housing services. Scholten encouraged constituents and organizations to report any issues caused by the freeze to better advocate for solutions.
“This haphazard order risks harming our families and neighbors,” Scholten said. “We’re bringing your stories to the White House to fight this overreach.”
Temporary Relief Amid Uncertainty
While Tuesday’s ruling offers a temporary reprieve, the legal battles are far from over. Both lawsuits seek permanent injunctions to ensure federal funds flow without interruption. Advocates emphasize the stakes, pointing out the devastating consequences for essential services if funding disruptions persist.
“We will not stand by while the president breaks the law and oversteps his authority,” said New York Attorney General Letitia James. “The people we serve depend on these programs for their health, safety, and livelihoods.”
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