Six Democratic-led states and nonprofit coalitions are suing the Trump administration over a federal grant and loan pause they claim could have devastating consequences. Advocates argue the policy disrupts health care, disaster aid, and vital programs, potentially affecting $3 trillion in assistance.
States like New York and California criticized the memo for freezing Medicaid funds and disaster relief. Nonprofits warn the pause endangers services like housing assistance, suicide hotlines, and cancer research. Advocacy groups called it reckless and harmful to vulnerable communities.
The White House defended the move as aligning funding with Trump’s priorities, targeting programs like DEI initiatives and climate policies. Officials assured Social Security, Medicare, and food stamps remain unaffected.
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