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Trump's aid freeze frozen

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29.01.2025

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The Big Story

Biden-appointed judge holds up Trump aid freeze

A federal judge blocked President Trump’s plan to freeze federal aid just minutes before it was set to go into effect late Tuesday afternoon.

© The Associated Press

U.S. District Judge Loren AliKhan said she was granting a “brief administrative stay” that preserves federal disbursements at least until Monday after a group of nonprofit and public health organizations filed a lawsuit.

The challenge was brought by the National Council of Nonprofits; SAGE, a pro-LGBTQ advocacy organization for older adults; the American Public Health Association; and small-business group Main Street Alliance. They are represented by Democracy Forward, a left-leaning legal organization that has frequently battled Trump in the courts.

The move comes as Democrats have been raising questions of the legality of Trump’s recent order since it was rolled out on late Monday.

The recent order directed federal agencies to temporarily pause “all activities related to obligation or disbursement of all Federal financial assistance” while the government conducts a review to ensure spending aligns with Trump’s agenda.

The administration defended its plan Tuesday and stressed its limitations, insisting the plan doesn’t apply across the board and won’t affect Social Security and other direct payments to individuals.

The Hill's Zach Schonfeld and Ella Lee have more here.

Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Taylor Giorno — covering the intersection of Wall Street and Pennsylvania Avenue.

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Johnson floats possibility of working with Democrats on debt ceiling

DORAL, Fla. — Speaker Mike Johnson (R-La.) in a Tuesday interview with The Hill’s Emily Brooks floated the possibility of working with Democrats to raise the debt ceiling instead of including it in the GOP’s reconciliation package, which Republicans hope to pass in a party-line vote.


© The Hill