Trump Halts Federal Funding Freeze Following Legal Challenges

Fri Jul 18 2025 08:35:38 GMT+0300 (Eastern European Summer Time)
Trump Halts Federal Funding Freeze Following Legal Challenges

President Trump's administration reverses a controversial freeze on federal grants and loans after a federal judge intervenes, reshaping the landscape for Medicaid and other vital services.


In a significant policy reversal, President Trump has lifted a freeze on federal funding that had caused widespread confusion and disruptions, particularly affecting Medicaid services for low-income Americans, after legal intervention prompted the change.


The White House announced yesterday that President Trump has rescinded his directive freezing trillions of dollars in federal grants and loans, a move that had been met with public outcry and confusion across the nation. This decision follows a federal judge's intervention, which temporarily blocked the directive aimed at cutting off crucial funding.

The administration struggled to clearly communicate the implications of the freeze, which notably impacted the Medicaid system, crucial for the health care of millions of low-income Americans. In response, White House Press Secretary Karoline Leavitt took to social media to clarify that “This is NOT a rescission of the federal funding freeze” and assured that executive orders regarding federal funding “remain in full force and effect.”

This reversal from the Trump administration marks a considerable shift in policy, with Democratic leaders celebrating the president's retraction. Meanwhile, Robert F. Kennedy Jr., Trump's contentious nominee for health secretary, faced intense scrutiny during Senate confirmation hearings, where he attempted to clarify his controversial views on vaccines amid public skepticism.

In other developments, President Trump also signed his first official bill into law, authorizing the detention and deportation of certain immigrants accused of specific crimes. His envoy to the Middle East, Steven Witkoff, engaged in discussions with Israel’s prime minister, further indicating Trump's proactive foreign policy approach. Additionally, the administration took steps to eliminate officials perceived as disloyal and amend agency policies deemed overly liberal, stating it would be a swift and significant purge.

With prosecutors dropping charges against some of Trump’s co-defendants in the classified documents case and the administration offering federal workers voluntary resignations, the recent days have seen a flurry of activity in Trump's ongoing reshaping of federal policy and personnel.

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