A federal judge blocked the White House’s order to freeze federal grants and loans just minutes before it was set to take effect on Tuesday, January 28, at 5 p.m. ET. The ruling temporarily halts a move that would disrupt education programs, scientific research, and other federally funded initiatives.
The Office of Management and Budget has since withdrawn its directive to halt payments for federal grants and other programs, according to a memo obtained by Democracy Forward, the organization that challenged the measure in court. However, the White House clarified that while the initial memo ordering the freeze has been revoked, the broader review of federal spending remains in place.
Acting Office of Management and Budget (OMB) Director Matthew J. Vaeth issued the internal memorandum on Monday, January 27, advising that federal agencies “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.” The directive also applied to “other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
The memo specified that Medicare and Social Security were exempt, but the status of federally funded programs such as SNAP benefits, Medicaid, and disaster relief remained uncertain. Potential impacts on student loans, Pell Grants, domestic violence protections, cancer research, food assistance, suicide hotlines, and homeless shelters raised broader concerns.
Before the court’s intervention, the National Institutes of Health (NIH), the largest public funder of biomedical research, had already suspended meetings and grant reviews. The National Science Foundation (NSF), which awards approximately $9 billion in research funding annually, had also canceled more than 60 grant review meetings scheduled for this week.
The White House order, issued Monday evening with limited details, directed agencies to submit information about affected programs, projects, or activities to the OMB by February 10. Though the order has been rescinded, it is not clear what fiscally related actions will be taken moving forward.
