Decree signed by the President blocked financing and loans to assistance programs, NGOs and Small Business
The United States government revoked on Wednesday (29.jan.2025) a decree suspended federal loans and other forms of financial assistance. The decision of the Management and Budget Office is shortly before Rhode Island’s John McConnel judge, evaluating a request from 22 states, mostly governed by Democrats, and Columbia district. They asked for a temporary restriction order against politics that, according to them, could severely affect their budgets.
The federal measure Donald Trump (Republican) on Monday (27.jan). In the document, the agent ordered the freezing of resources in the country “Until you know if these transfers are aligned with the priorities” of the current management.
Trump’s initial guideline interrupts the Medicaid system, which provides medical assistance to millions of low-income Americans. It also suspended financing, loans and other federal assistance programs to schools, hospitals, non -profit organizations, research companies and police agencies.
Democrats faced the measure as an attack on Congress’s authority on federal spending, while Republicans defended it as fulfilling Trump’s promise to control the federal budget of $ 6.75 trillion.
The White House sent a letter to several organs this Wednesday (29.jan) to inform about the retreat. “The memo OMB M-25-13 has been revoked. If you have questions about the implementation of the president’s decrees, please contact the general legal advisor of your agency, ” says excerpt from the memorandum obtained by
White House Press Secretary Karoline Leavitt said the revocation was. “In the light of the injunction, the OMB terminated the memorandum to end any confusion about the federal policy created by the court decision and the dishonest coverage of the media.”Leavit told the .
Attorneys of the 22 states and Washington DC stated that politics is unconstitutional, since Congress had already determined the allocation of the funds. They also expressed concern that the policy endangered funds intended for disaster assistance, essential for the reconstruction of Southern California after forest fires.
“The president cannot decide which laws to apply and for whom”said the Attorney General of the State of New York, Letitia James. She highlighted the position of the states that challenge Trump’s policy.
