Arizona Attorney General Kris Mayes is joining other attorneys general to stop the Trump administration's federal funding freeze.
WATCH: AG Mayes announces lawsuit for "illegal federal spending pause"
Nonprofit groups and attorneys general in multiple states are suing after the White House took drastic measures to control trillions of federal dollars by ordering a freeze on all federal grants and loans.
The temporary pause was slated to go into effect Tuesday at 5 p.m. ET and block the disbursement of nearly all federal funding. The order also directs all federal agencies to submit detailed reports on "any programs, projects or activities subject to this pause" by no later than Feb. 10, 2025.
U.S. District Judge Loren L. AliKhan ruled Tuesday afternoon that payment of active federal awards would have to continue, effective immediately and through at least Monday, February 3. The Trump administration would remain free to pause and review new awards, meaning new grants and funding would still be halted for the time being in accordance with the memorandum.
The judge cited the "specter of irreparable harm" in issuing the stay. The court will now take time to review more details of the case. Parties have been instructed to brief the court no later than Friday and the court will hold a new hearing on Feb. 3.
Separately, New York Attorney General Letitia James said Tuesday attorneys general in multiple states would sue to fight against the funding freeze.
"This policy is reckless, dangerous, illegal and unconstitutional," James said. "While the administration may be attempting to clarify the scope and meaning of this memorandum, the reality is that some states are already reporting that funds have been frozen."
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"The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve," Office of Management and Budget Acting Director Matthew Vaeth said in a memo. "This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements."
The order will impact a huge swath of federal funds already allocated for things like the Inflation Reduction Act and Bipartisan Infrastructure Bill projects, as well as foreign aid commitments and funding for some non-profit organizations and services.
Social Security and Medicare payments are not slated to be impacted. Funding for those initiatives will continue uninterrupted.
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Nonetheless, the reaction from Democrats on Capitol Hill has been swift and angry. Senate Minority Leader Chuck Schumer said the order simply expands the "lawlessness and chaos" of the Trump administration.
"Donald Trump's Administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country," Schumer said in a statement. "If this continues, the American people will pay an awful price."
"It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need," Schumer added.
New York Attorney General Letitia James said Tuesday that she and several other state Attorneys general intend to sue to block the Trump administration order from going into effect.
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“There is no question this policy is reckless, dangerous, illegal and unconstitutional, from the families who rely upon head start for child care to the children across the country who depend on SNAP for their next meal, to the seniors who rely on state services to get the care that they need," James said at a press conference. "This policy will disrupt the lives of millions of Americans in New York and nationwide, and while the administration may be attempting to clarify the scope and meaning of this memorandum. The reality is that some states are all ready, reporting that funds have been frozen. Head Start was frozen in Michigan, access to child development block grants were frozen in Maryland.”
The White House is aware of the Medicaid website portal outage.We have confirmed no payments have been affected — they are still being processed and sent. We expect the portal will be back online shortly.
— Karoline Leavitt (@PressSec) January 28, 2025
However, according to a senior administration official, the federal funding freeze does not apply across the board and will not impact individual payments or assistance, including things like Supplemental Nutrition Assistance Program food benefits for low-income families.
The official also said the pause isn't permanent and is intended to give federal agencies time to ensure their grants, loans and programs comply with Trump administration policies and goals. Agencies may also reportedly seek exemptions on a case-by-case basis.
The National Council of Nonprofits, American Public Health Association, Main Street Alliance and SAGE also banded together to sue the Office of Management and Budget stating the memorandum to temporarily pause federal grants was "made public only through journalists’ reporting, with barely twenty-four hours’ notice, devoid of any legal basis or the barest rationale—will have a devastating impact on hundreds of thousands of grant recipients who depend on the inflow of grant money (money already obligated and already awarded) to fulfill their missions, pay their employees, pay their rent—and, indeed, improve the day-to-day lives of the many people they work so hard to serve."
"Although the Trump Administration is at liberty to “advanc[e] [its] priorities,” it must do so within the confines of the law. It has not," the lawsuit stated."