Social assistance freeze halted for the time being

Confusion and uncertainty among US citizens: Donald Trump wants to freeze social benefits. A judge has blocked the regulation for the time being.

Jan 30, 2025 - 13:27
Social assistance freeze halted for the time being

The administration of US President Donald Trump has announced in an internal memo to the various ministries that it will temporarily freeze many social benefits at the federal level. It is said that it will be checked whether these are in line with the White House's agenda. The memo, which was written by the US Budget Office, was supposed to take effect on Tuesday afternoon. On the same day, a judge blocked the regulation and postponed its entry into force.

Several nonprofit organizations had filed suit against the government order. The preliminary injunction issued by Judge Loren L. AliKhan is intended to allow the court to take a closer look at the legal arguments of the government and the plaintiffs.

"Plaintiffs [...] seek a preliminary injunction to maintain the status quo until the Court has an opportunity to more fully examine the illegality of the Trump administration's actions," wrote the National Council of Nonprofits and the American Public Health Association.

The budget office's order, which was published by several US media outlets, caused great uncertainty and confusion in the country. Welfare recipients and other benefit recipients fear that a temporary halt could lead to major problems. The staff offices of US senators and representatives were therefore inundated with numerous constituent inquiries on this matter over the course of the day.

White House Press Secretary Karoline Leavitt tried to calm people's fears during her first press conference in office. She explained that the temporary freeze on government benefits was to ensure that both the benefits and the recipients do not violate the decrees and regulations that Trump issued during his first week in office.

The communication to the ministries named "wokeness," programs to promote diversity, and the Green New Deal as topics that are directed against Trump's agenda. "The use of federal funds to promote Marxist equality, transsexuality, and social engineering in the spirit of the Green New Deal is a waste of taxpayer money and does not contribute to improving the daily lives of the people we serve," the internal communication states. The regulation did not specify exactly how the review of the various state benefits should take place.

From aid to nonprofits and universities to loans for small businesses and grants for local communities, everything could be affected.

If the temporary freeze does come into effect, it could have far-reaching consequences. Everything from aid for nonprofit organizations and universities to loans for small businesses and grants for local communities could be affected.

According to the White House, the United States will spend about three trillion dollars on government subsidies and social benefits in 2024. Recipients of programs such as the government health insurance for people over 65, Medicare, or the old-age pension Social Security will be spared even if the program is stopped, the White House assured.

The American Constitution states that only the US Congress can pass budget spending. But Trump's nominated director of the Budget Office, Russell Vought, is an avowed Trump supporter. Vought worked on the much-discussed Project 2025 and is considered a conservative hardliner.

Democrats in the US Congress pounced on the situation to score political points. Senate Minority Leader Chuck Schumer condemned the government's decision. "This is a stab in the heart of the average American family," he said during a press conference. He also mentioned Project 2025, which is seen as a conservative blueprint for Trump's second term.

Republicans like Senator Lindsey Graham also expressed skepticism. "People are asking themselves: What does this mean? How long will it take?" These are all questions to which there are currently no precise answers.