Loren AliKhan, Deputy Solicitor General for the District of Columbia, addresses the Senate Judiciary Committee during a hearing on Universal Injunction Challenges in Washington on Tuesday, February 25, 2020.
A federal judge in Washington indicated on Monday that some federal aid spending may still be stalled, despite a court order that blocked a funding freeze ordered by the Trump administration. This statement came shortly after the Office of Management and Budget (OMB) attempted to rescind its earlier memo implementing the funding pause.
Last week, President Donald Trump directed a freeze on both domestic and international federal aid, aiming to stop funding for initiatives that did not align with his administration’s priorities. However, in light of legal challenges, the acting OMB director quickly retracted the freeze. Even so, lawsuits contesting the initial freeze are progressing through the judicial system.
During a hearing on Monday, Judge Loren AliKhan expressed a willingness to grant a temporary restraining order requested by a coalition of nonprofit organizations. This order would compel the government to release federal funds that had been frozen since the previous week. AliKhan noted her inclination against the Justice Department’s motion to dismiss the nonprofits’ lawsuit as moot, given the OMB’s rescission of the memo.
“We have individuals who are still having issues accessing funding platforms,” AliKhan remarked, suggesting that the memo’s effects are still felt. Lawyers representing the nonprofits presented declarations from various small organizations documenting their struggles to access federal funds. As of Friday, three days after AliKhan’s initial ruling against the funding freeze, numerous entities—including rural health centers and childcare facilities—reported that they had yet to receive expected funding.
One declaration, from the board president of a West Virginia nonprofit assisting individuals with disabilities, highlighted the urgency of their funding situation. This organization had been waiting for federal funds to be deposited since January 29 but had received nothing by the following Sunday. “I am desperate to bring attention to our situation,” the board president stated. “It is unbelievable that anyone would not want to help an 86-year-old woman access her dialysis sessions or support a family with autism.”
The declaration further explained that while the organization had sufficient funds to meet payroll on January 31, they were unable to cover another full pay period without further assistance, resulting in layoffs and reduced services.
Diane Yentel, president and CEO of the National Council of Nonprofits, submitted a declaration expressing significant concern about the ongoing funding freeze. “Many of our nonprofit members still cannot access their disbursements, even after this Court’s administrative stay and the OMB’s rescission of its memo,” she wrote. “I’m concerned that the issues may still be widespread.”
Another declaration from the CEO of a rural health center emphasized the need for immediate restoration of federal funding to continue providing care for patients, stating, “I don’t care about the political fight surrounding the OMB memo. I just want to help my Health Center’s staff care for our patients.”
Judge AliKhan, who promised to issue a ruling by 5 p.m. on Monday, noted that a temporary restraining order would not alter the current situation but would reaffirm the court’s previous order issued by a federal judge in Rhode Island in a related case involving 22 Democratic state attorneys general.
