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Federal grants freeze lifted by Trump administration


The Trump administration reversed its freeze on federal grants and loans after facing backlash from Congress and legal challenges. The move to review grants and loans to align with the President’s priorities was criticized as unconstitutional by lawmakers and legal experts. A federal judge temporarily blocked the policy, leading to the administration backing down and rescinding the memo. The decision of the administration came just before another judge was set to consider a request from states for a restraining order against the policy.

Republicans and Democrats on Capitol Hill supported the administration’s reversal, with some calling it an important victory for the American people. The Department of Veterans Affairs also announced that its grant and loan programs would continue under a White House memo, ensuring no impact on healthcare or benefits. The CEO of Democracy Forward, which led the legal challenge to the policy, expressed relief at the decision and promised to take legal action to protect federal funding.

Senate Minority Leader Chuck Schumer called for the withdrawal of Russell Vought’s nomination to head the Office of Management and Budget in light of the administration’s reversal. Overall, the administration’s decision to rescind the freeze on federal grants and loans was seen as a positive outcome by some, while others criticized the chaos and harm caused by the initial policy.

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