UPDATE: Judge temporarily blocks Trump administration freeze on broad swath of federal payments

Published 10:52 am Tuesday, January 28, 2025

UPDATE: A federal district judge ruled Tuesday, Jan. 28, that the Trump administration must wait until at least next week before it can move forward with pausing federal spending on trillions in grants and loans, though she emphasized the short-term administrative stay might not continue after a Feb. 3 hearing.

District Judge Loren L. AliKhan’s decision temporarily blocks the Office of Management and Budget from moving forward with plans to stop payments on multiple federal programs, which it announced late Monday.

The two-page memo from the Office of Management and Budget announcing the freeze led to significant confusion throughout the day Tuesday among members of Congress — including Republicans — about what programs were affected and frustration the White House appeared to be eroding lawmakers’ constitutional spending authority.

AliKhan’s ruling came less than 24 hours after news first broke of the Trump administration’s planned action.

This is the earlier story:

Oregon leaders were scrambling Tuesday morning after an announcement from the Trump administration that it was at least temporarily freezing many federal funds.

State budgets rely heavily on federal funding: In Oregon, they make up about 30% of the two-year budget — nearly $40 billion — with certain big-ticket programs, like Medicaid, receiving the biggest chunks of the funding.

Medicaid serves 1.3 million low-income Oregonians and the federal government pays for about two-thirds of that budget. That funding is vital to ensure that people get treatment when they need it, including for cancer treatment, surgeries, chronic health problems, addiction and mental health services.

But on Tuesday, state governments had apparently lost their access to the federal government’s Medicaid access sites, according to a post on X by Oregon’s U.S. Sen. Ron Wyden:

“My staff has confirmed reports that Medicaid portals are down in all 50 states following last night’s federal funding freeze. This is a blatant attempt to rip away health insurance from millions of Americans overnight and will get people killed,” Wyden said.

Many other programs in Oregon rely on federal money. According to a list posted by Wyden’s office, a freeze could touch people across the state and in many areas of life, from public safety and addiction treatment to suicide prevention, veterans care, schools, small businesses and tribes.

The announcement to federal agencies stirred questions and worry and was on the top of Gov. Tina Kotek’s mind as she met Tuesday morning with city officials and staff as part of the League of Oregon Cities’ annual lobbying day — an event that already focused on how cities and the state have been hurt by reduced federal funding for infrastructure.

She told city leaders she was frustrated by the federal government’s lack of clarity, and that she was doing everything she could to figure out what was going on.

“I’m a little frustrated this morning because I’m hearing we’ve got money streams being gummed up and actually stopped,” Kotek said. “That does not help anybody. I just want you to know we’re on the case, and we are trying to figure it out, because as the folks in the local communities providing the services, you need to know what’s going on, and we’re going to do everything we can to figure that out.”

A Kotek spokeswoman said the office’s top priority was coordinating with state agencies to figure out impacts.

Before Trump took office, Kotek and members of Oregon’s congressional delegation pushed Joe Biden’s administration to speed up disbursing federal grants that were approved for Oregon.

A spokesperson for Attorney General Dan Rayfield said the Department of Justice was still deciding whether and how Oregon will challenge the directive in court.

Officials from the Oregon Health Authority and departments of human services, education, environmental quality, agriculture, forestry and others did not immediately respond to a request for details and comment. A spokesman for the department of transportation deferred to Kotek’s office.

But some Democratic members of Oregon’s congressional delegation were quick to react:

“Chaos is not leadership,” said Sen. Ron Wyden, Oregon’s senior senator. “Ransacking resources from Oregonians counting on federal support for local law enforcement, schools, small businesses, firefighters, veterans and more hurts each and every community I am honored to represent. My team and I are working overtime right now to hold this lawless administration accountable for trampling the Constitution and make sure that everyone depending on these funds aren’t left in the cold.”

Oregon’s U.S. Sen. Jeff Merkley, also the ranking member of the Senate Budget Committee, said Trump’s order is unconstitutional and will ripple through local communities.

“The President is not a king, and the laws Congress passes are not suggestions,” Merkley said. “The Trump administration must follow the law and immediately reverse this shameful order. Federal funds are the foundations for our schools, hospitals, and law enforcement and fire departments.”

U.S. Rep. Suzanne Bonamici said Trump’s move will shut down essential services for Oregonians across a range of areas.

“Federal funding, including grant funding, gives Oregonians and Americans better opportunities and better access to quality health care, housing, education, infrastructure, scientific advancements, and much more,” Bonamici said. “It is the role of Congress — not the President — to pass funding. Now Trump is shutting down essential functions of the government by attempting to block funding that Congress passed and that was signed into law. This will harm families, workers, and the economy, and in some cases cost lives. I will do everything I can to get this funding restored.”

And U.S. Rep. Andrea Salinas condemned Trump’s move as an “illegal theft” of taxpayer dollars.

“With the stroke of his pen, President Trump is ordering an unprecedented steal that will take critical resources away from our police, firefighters, veterans, growers, and working families here in Oregon and across the country,” she said. “Oregonians will immediately feel the effects of Trump’s steal at a time when most folks are already struggling to pay the bills and put food on the table.”

This story was originally published by Oregon Capital Chronicle and used with permission. Oregon Capital Chronicle is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Oregon Capital Chronicle maintains editorial independence. Contact Editor Lynne Terry for questions: info@oregoncapitalchronicle.com. Follow Oregon Capital Chronicle on Facebook and X.