State Attorneys Oppose Federal Aid Freeze

Democratic state attorneys general plan to challenge a Trump administration directive that freezes federal loans and grants. The lawsuit seeks to halt the directive, citing lack of legal authority and potential harm to nonprofits and state services. The directive targets programs not aligned with Trump's policies.


Devdiscourse News Desk | Updated: 29-01-2025 01:14 IST | Created: 29-01-2025 01:14 IST
State Attorneys Oppose Federal Aid Freeze
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Democratic state attorneys general intend to fight a Trump administration directive freezing federal loans and grants. Filed by states such as New York and California, the lawsuit aims to combat what is viewed as an unconstitutional and illegal policy enacted by the acting head of the U.S. Office of Management and Budget.

The initiative, claimed to have exempted Medicaid contrary to some allegations, impacts numerous states and nonprofits reliant on federal financial aid. Critics argue it violates recipients' First Amendment rights. A separate but similar lawsuit has been filed by advocacy groups in Washington, D.C.

The directive ties funding to programs aligning with Republican President Donald Trump's priorities, including recent executive orders ending diversity and inclusion initiatives. The U.S. Department of Justice, tasked with defending the policy, has refrained from commenting, while opponents voice concerns over potential disruption to government services.

(With inputs from agencies.)

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