Nonprofits take legal action against Trump over "devastating" aid freeze

Washington DC - Several nonprofits and a business group filed a lawsuit Tuesday against the White House budget office, asking the court to block its order that would pause federal financial assistance.

In a memo dated Monday, the Office of Management and Budget (OMB) under President Donald Trump called for a funding halt that could potentially impact trillions in government spending and has caused immense uncertainty around the country.
In a memo dated Monday, the Office of Management and Budget (OMB) under President Donald Trump called for a funding halt that could potentially impact trillions in government spending and has caused immense uncertainty around the country.  © JOE RAEDLE / GETTY IMAGES NORTH AMERICA / GETTY IMAGES VIA AFP

In a memo dated Monday, the Office of Management and Budget (OMB) under President Donald Trump called for a funding halt that could potentially impact trillions in government spending and has caused immense uncertainty around the country.

The freeze was ordered to begin Tuesday afternoon, and agencies were called to review their assistance programs – which the notice said should be "consistent with the President's policies and requirements."

The lawsuit, filed with the US District Court for the District of Columbia, noted that the OMB memo was "made public only through journalists' reporting, with barely twenty-four hours' notice."

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It slammed the order as being "devoid of any legal basis or the barest rationale," adding that a funding freeze would have a "devastating impact on hundreds of thousands of grant recipients."

Recipients rely on grant money to fulfill their missions and pay staff salaries and other obligations like rent, the lawsuit said.

The groups warned that recipients would be "thrown into disarray" if the action were implemented and called for a "a temporary restraining order to maintain the status quo" until the court has assessed the "illegality" of the OMB's order.

The plaintiffs were the National Council of Nonprofits, the American Public Health Association, small business group Main Street Alliance, and SAGE, a New York group providing assistance to the LGBTQ community.

Uncertainty surrounds vital programs after OMB funding halt

The budget office's two-page memo said Medicare or Social Security benefits would not be impacted, but it has sparked uncertainty.

The order was met with fury from Democratic lawmakers, with Senate Minority Leader Chuck Schumer calling it "illegal" and "unconstitutional."

Michigan Attorney General Dana Nessel warned in a social media post that her department is "learning already of services impacted throughout the State, including Medicaid and Head Start."

Medicaid is a health program that helps pay for medical services for those with low-income and disabilities, while Head Start supports children.

Cover photo: JOE RAEDLE / GETTY IMAGES NORTH AMERICA / GETTY IMAGES VIA AFP

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