States And Nonprofits Suing Trump Over ‘Catastrophic’ Pause In Federal Funding:

[Lori Dee]

States And Nonprofits Suing Trump Over 'Catastrophic' Pause In Federal Funding: 'Immediate Nationwide Harm'
Link to Full Article
Forbes - Alison Durkee
Jan 28, 2025,02:27pm EST

Coalitions of Democratic state attorneys general and nonprofits announced lawsuits against President Donald Trump's administration Tuesday over its guidance temporarily pausing nearly all federal assistance ...

The National Council of Nonprofits and other organizations sued the Office Of Management and Budget and its Acting Director Matthew Vaeth Tuesday in federal court, after Vaeth issued guidance Monday evening directing federal agencies to stop disbursing federal grant and loan money starting at 5 p.m. EST Tuesday.

Democratic attorneys general in New York, California, New Jersey, Illinois, Massachusetts and Rhode Island then announced they will file a lawsuit later Tuesday taking aim at the policy and seeking a court order to immediately stop it, with New York Attorney Letitia James saying the order is "dangerous, reckless, illegal and unconstitutional."

The nonprofits say the guidance should be overturned because it violates the Administrative Procedure Act, arguing it is "arbitrary and capricious," exceeds the agency's authority and is contrary to the First Amendment.

The groups argue that nonprofits like those that advocate for left-leaning causes like LGBTQ rights may have their funding stripped under the new guidance because of those views.

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[Lori Dee]

UPDATE: White House rescinds federal aid freeze
CNN News - Kaitlan Collins, Alayna Treene and Samantha Waldenberg
Published 1:07 PM EST, Wed January 29, 2025

Though White House aides publicly blamed the media for causing the confusion, arguing that none existed within the building, the administration had received a flood of calls from lawmakers and state officials with questions about its impact on their home states.

Federal agencies "must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance," White House Office of Management and Budget Acting Director Matthew Vaeth said in the original memorandum, a copy of which was obtained by CNN, citing administration priorities listed in past executive orders.

On Tuesday afternoon, a federal judge temporarily blocked part of the Trump administration's aid freeze.

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