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Viral Trending content > Blog > Business > Funding freeze halted, White House preps for legal battle
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Funding freeze halted, White House preps for legal battle

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The White House said on Wednesday it was prepared to fight in court after a US judge temporarily blocked part of the Trump administration’s sweeping directive to pause federal loans, grants and other financial assistance.

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‘Transparency’ in MedicareNo net for Venezuelans

“Everything this administration does is within the confines of the law, so we’re prepared to fight this battle in court,” White House spokesperson Karoline Leavitt told reporters outside the White House.

US District Judge Loren AliKhan’s Tuesday ruling was a win for advocacy groups who said the funding pause would be devastating for tens of millions of Americans who depend on the money for essential services. She will revisit the issue on Monday.

The Trump administration faces another legal challenge from Democratic state attorneys general. In a separate lawsuit, they argue that the freeze violates the US Constitution and would have a devastating effect on states that rely on federal aid for a substantial portion of their budgets. A federal judge in Rhode Island will consider their request to block the freeze at 3 pm Eastern time (2000 GMT).

‘Transparency’ in Medicare

Washington also announced it will consider opportunities to “bring greater transparency” for the Medicare drug price negotiation program under the Trump administration.The price negotiation process was established under former President Joe Biden’s signature Inflation Reduction Act in 2022. Earlier this month, the outgoing administration released a list of 15 drugs that are set to undergo the process. The drugs, including Novo Nordisk’s diabetes and weight-loss treatments Ozempic and Wegovy, are among the most expensive for Medicare insurance plans for people aged 65 and older or with disabilities.

The Centers for Medicare and Medicaid Services said it will give opportunities for “stakeholders to provide specific ideas” that can help improve the negotiation process.

No net for Venezuelans

In another development, the Trump administration has ended extended protections for Venezuelans with Temporary Protected Status in the US, Homeland Security Secretary Kristi Noem told Fox News Wednesday.

Noem said the Department of Homeland Security would not follow a Biden-era move that gave Venezuelans in the US with the TPS program an additional 18 months of protections.

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