Summary

  • A US judge temporarily blocks a sweeping White House order to pause federal grants, loans and other financial assistance from taking effect

  • In her first-ever briefing, White House Press Secretary Karoline Leavitt said Trump's plan to pause trillions of dollars in US government funding is about being "good stewards of tax dollars", which she said the president was elected to do

  • The judges ruling came as it was set to come into force on Tuesday, and as confusion spread over which programmes would be impacted

  • Democratic minority leader of the US Senate, Chuck Schumer, earlier said the move would cause missed payrolls and rent payments, and cause "chaos"

Media caption,

Pause on federal funding targeted at DEI and 'wokeness', says White House

  1. First White House briefing and federal funding confusion: another busy day in Washingtonpublished at 01:51 Greenwich Mean Time 29 January

    Karoline Leavitt speaks to the pressImage source, Getty Images

    The White House on Tuesday held its first press briefing of Donald Trump's second administration, with spokeswoman Karoline Leavitt telling reporters she promises to tell them truth - and asking the same of them.

    She answered questions about what has been a busy day in Washington DC. Here's what you may have missed:

    • Leavitt's first news briefing included her declaration that mysterious drones over New Jersey were "not the enemy" and an invitation to podcasters, TikTokers and social media influencers to apply for journalists credentials at the White House
    • "The president is the best spokesperson that this White House has," she said, pointing to how often Trump has spoken to the press in his past week, saying that Biden spoke to reporters much less frequently
    • The administration continued its efforts to overhaul federal government policies, including plans laid out in a leaked memo that would pause federal grants, loans and other financial assistance programmes, triggering confusion and worry about organisations that rely on federal tax dollars
    • That order was blocked by a judge until at least Monday, as the court considers the arguments from the Trump administration and a group representing non-profit organisations affected by the rule change
    • Some critics had worried the the funding freeze could affect food stamps, the Medicare and Medicaid insurance systems, early childhood education programmes, farm subsidies, foreign aid, Social Security pension payments, student loans and hundreds of other projects
    • But reports of a separate leaked memo seemed to clarify that programmes such as food stamps and Medicaid would not be affected, while the Pentagon and student loan authorities said their funding was continuing as normal
    • Some platforms related to federally funded programs did end up offline however, though the White House said it was "aware" of those issues and that the websites would be back up "shortly"
    • In a separate development, an offer to resign has been sent to federal employees, in an effort to majorly reduce the government workforce
    • Trump also signed an executive order that aims to limit gender care for transgender minors

    We are pausing our live coverage for now, but you can read more here:

    White House defends freezing funds as 'reasonable' while Democrats express 'extreme alarm'

  2. Why Trump can win with his executive orders - even if he loses in courtpublished at 01:07 Greenwich Mean Time 29 January

    Kayla Epstein
    US reporter

    It's not surprising that the executive orders Donald Trump has signed in his first days in office are being challenged in court, says Jon Rogowski, a political science professor at the University of Chicago.

    But Rogowski says he also wouldn't be surprised if Trump and his team had anticipated such challenges, and calculated that it was worth it to try to push through these orders anyway.

    "Trump promised to shake things up. He is certainly delivering on that promise," Rogowski said.

    Additionally, the moves could still earn him political points, even if they don't hold up under legal scrutiny.

    "His controversial actions thus far - efforts to end birthright citizenship, reassert presidential control over the federal workforce, launch aggressive crackdowns on immigration, and reshape the nation’s spending priorities, among others - have strong support from his political base," said Rogowski.

    "Even if the courts ultimately strike down some or all these actions, Trump likely wagers that he still gets credit from these groups for trying."

  3. Speaker Johnson says he 'fully' supports Trump's funding freezepublished at 00:55 Greenwich Mean Time 29 January

    Mike Johnson and Donald TrumpImage source, Getty Images

    US House Speaker Mike Johnson has defended President Donald Trump’s widespread pause on federal grants and loans, saying he fully supports it.

    "It is a temporary pause; for some programs it could be an hours-long pause. It is not a thing,” Johnson told The Hill newspaper on Tuesday.

    "I think these will be quick reviews, I don’t think this is a big, major interruption of programming or anything, and it specifies in the OMB guidance that any direct aid (to) individuals is not included in this."

    The directive, which a federal judge has temporarily blocked from going into effect, has unleashed furious reactions from lawmakers, mostly Democrats and a few Republicans. Many have cited the US constitution's provision saying that "the power of the purse" lies with the Congress rather than the executive branch.

    Republican Senator Susan Collins warned that Trump’s policy could hurt working-class people.

    "This is far too sweeping and will have an adverse effect on the delivery of services and programs," she told reporters on Tuesday.

  4. Federal workers union slams employee buyout offerpublished at 00:41 Greenwich Mean Time 29 January

    The largest union representing federal employees has come out against the buyout deal to reduce the number of government employees.

    The American Federation of Government Employees (AFGE) said it will have "unintended consequences that will cause chaos for the Americans who depend on a functioning federal government".

    According to CBS News, which has seen the memo sent to employees, it says: "If you resign under this program, you will retain all pay and benefits regardless of your daily workload and will be exempted from all applicable in-person work requirements until September 30, 2025 (or earlier if you choose to accelerate your resignation for any reason)."

    AFGE logoImage source, Getty Images
  5. Trump signs order aimed at restricting gender care for childrenpublished at 00:33 Greenwich Mean Time 29 January

    President Donald Trump has signed an executive order aimed at restricting gender care for young people.

    The order, titled "Protecting Children from Chemical and Surgical Mutilation", says it will prevent those aged under 19 from making “life-altering” choices.

    “It is the policy of the United States that it will not fund, sponsor, promote, assist, or support the so-called 'transition' of a child from one sex to another, and it will rigorously enforce all laws that prohibit or limit these destructive and life-altering procedures,” the order says.

    It’s unclear how the order would be implemented, and it is likely to face legal challenges.

    The order directs federally run insurance programmes to exclude coverage for treatments related to gender transition for minors. It refers to medical treatments including the use of puberty blockers as well as surgical procedures.

    More than 26 US states have already placed restrictions on gender care for minors.

    The US Supreme Court is currently weighing whether a ban on hormone therapy and puberty blockers for children under 18 in Tennessee is constitutional.

    Joe Biden’s administration had supported the legal challenge against the Tennessee law, and the order from the Trump White House is the latest move to reverse Biden’s policies on transgender issues.

  6. Federal government offering some workers opportunity to quitpublished at 00:21 Greenwich Mean Time 29 January

    Federal government employees who are unwilling to return to the office will be offered the chance to resign and receive pay through September, according to the BBC's US news partner CBS.

    The buyout seems to apply to federal workers in various sectors, except personnel in the military, the US Postal Service, immigration enforcement and national security, CBS reported.

    Senior officials told US media that they expect anywhere between five to ten percent of employees to take the buyout, leading to as much as $100bn in savings. The federal government employs over two million people across the country.

    It appears to be a way for the Trump administration to meet the president's stated goal to reduce the federal bureaucracy.

    Workers who take the offer would retain pay and other benefits through 30 September, CBS said, and would have to decide whether to take the deal by 6 February.

  7. Watch: How Trump's new press secretary performed on White House debutpublished at 00:10 Greenwich Mean Time 29 January

    The BBC's North America editor Sarah Smith was in the White House briefing room this afternoon when Karoline Leavitt - the youngest White House press secretary in history - stood behind the podium to speak with reporters for the first time.

    Watch Sarah Smith's assessment of Leavitt's performance below:

    Media caption,

    Watch: How Trump's new press secretary performed on White House debut

  8. State Department targets "egregious funding" for reviewpublished at 00:00 Greenwich Mean Time 29 January

    USAID logo on a flagImage source, Getty Images

    The State Department is pausing "all US foreign assistance" by or through the agency or USAID, pending review, according to spokeswoman Tammy Bruce.

    "The mandate from the American people was clear – we must refocus on American national interests," the statement reads.

    The statement cited "examples of this egregious funding", which they said included $102m for the International Medical Corps in Gaza; $12.3m for USAID's Bureau for Resilience, Environment, and Food Security; and a $6.6m institutional contract for "democracy, rights and governance".

    According to the Reuters news agency, a memo from Secretary of State Marco Rubio outlines a waiver for life-saving humanitarian assistance during the review period of 90 days.

    That includes medicine, medical services, food and shelter, Reuters cited the memo as saying.

    The waiver does not cover activities that involve abortions, gender or DEI (diversity, equity and inclusion) programmes or transgender surgeries, according to the memo.

  9. Defence department says it is not pausing contractspublished at 23:43 Greenwich Mean Time 28 January

    The US Department of Defense says it's reviewing Trump's new order to pause federal funding, but that it would not affect the Pentagon's contracts if it goes into effect.

    "Contrary to certain media accounts, the Department of Defense has not paused contract awards. The Department continues to award new contracts to fulfill validated mission needs," the agency wrote on their website.

    It comes after Bloomberg reported on Monday that Defence Secretary Pete Hegseth had paused all new Army contracts.

    "While we are not aware of any specific contracts or other activities affected, it is possible that activities may be paused if they are determined to fall within the bounds of the guidance," the Pentagon added.

    • As a reminder, a judge has just temporarily blocked this federal funding freeze from going into effect.
  10. Student aid not affected by federal funding freezepublished at 23:29 Greenwich Mean Time 28 January

    Federal student aid funds, including loans and Pell grants, will not be impacted by Trump's order to freeze federal grants and loans, the Federal Student Aid (Fafsa) office says.

    "We continue to award and disburse federal student aid," the office wrote in a post on X.

    • As a reminder, a judge has just temporarily blocked this pause from going into effect.
  11. Group that brought legal challenge cheers judge's decision on funding orderpublished at 23:23 Greenwich Mean Time 28 January

    Diane Yentel, the president of the National Council of Nonprofits, the organisation that brought the lawsuit against the order to pause US federal funding, has cheered the ruling temporarily blocking that order. .

    "Our lawsuit was successful - the US district court is blocking OMB from moving forward on its reckless plan to halt federal funding," she wrote in a post on X, referring to the US Office of Management and Budget.

    In the lawsuit, her organisation wrote that Trump's order seeks to "eradicate essentially all federal grant programs".

    The lawsuit argues that Trump's order is "devoid of any legal basis or the barest rationale" and will have ripple affects throughout the entire United States and beyond.

  12. Non-profit groups warn Trump's funding freeze would disrupt vital services, if it goes throughpublished at 23:09 Greenwich Mean Time 28 January

    A coalition of organisations representing non profits and other non-governmental groups has also filed a lawsuit against Trump's executive order freezing federal funding. (The order was just temporarily frozen by a federal judge in response to a separate lawsuit, which we covered below.)

    The order was "a confirmation of our worst fears that the decisions... are being made by disconnected leaders," said Richard Trent, executive director of Main Street Alliance, which represents small businesses across the country.

    Trent and other non-profit leaders said that Trump's order could affect federal funding for programmes meant to address, childcare, homelessness, services for LGBTQ+ people, and more.

    The confusion created by the order could also "result in a lot of dysfunction and loss of services," said Dr George Benjamin of the American Public Health Association.

  13. Ukraine suspends 'many' humanitarian programmes after US pulls foreign aidpublished at 22:45 Greenwich Mean Time 28 January

    Ukraine's president Volodymyr Zelensky gesturing with both hands while speaking behind two microphones. Wearing a black long-sleeved top with partial Moldovan and Ukrainian flags in backgroundImage source, EPA
    Image caption,

    Ukraine's president Volodymyr Zelensky at a press conference on 25 January in Kyiv

    Ukraine says "many" humanitarian programmes funded by the US have been suspended after the Trump administration halted nearly all foreign aid.

    "Today I instructed government officials to report on those US support programmes that are currently suspended," Ukrainian President Volodymyr Zelensky says in his evening address, adding "these are humanitarian programmes".

    "There are many projects. We will determine which of them are critical and need solutions now," Zelensky says, adding "we can provide part of this funding through our public finances, and we will discuss some of it with Europeans and Americans."

    The programmes cover a range of areas including communications and support for veterans, schools, hospitals, and reconstruction, he said.

    Zelensky goes on to say Ukraine will prioritise funding for certain programmes such as those for children, veterans and protecting infrastructure.

    As a reminder, Russia launched a full-scale invasion of Ukraine in February 2022 - Ukraine relies heavily on foreign aid with the US providing billions in support.

  14. Miller says spending freeze would get credit under controlpublished at 22:24 Greenwich Mean Time 28 January

    Bernd Debusmann Jr
    Reporting from the White House

    Stephen Miller talks to reportersImage source, EPA

    Stephen Miller, the White House's Deputy Chief of Staff, briefly addressed reporters on the driveway outside the West Wing.

    It was a few minutes before news broke that a judge had blocked the Trump administration's freeze on federal funding.

    In his remarks, Miller said that a pause on federal funding would allow the government to get "credit control".

    "It does not impact any federal programmes that Americans rely on," he said, specifically referring to a question about the "Meals on Wheels" programme as an example.

    He also touched upon the border and deportations, saying the administration would focus on "more ambitious targets" when it comes to arrests, with a focus on "public safety".

  15. Judge's order pushes funding freeze back until at least 3 Februarypublished at 22:14 Greenwich Mean Time 28 January

    Mere minutes before a federal funding freeze ordered by the Trump administration was about to begin, a US judge intervened.

    US District Judge Loren AliKhan in Washington DC said that the Trump administration must not block existing funding programmes until 17:00 EST (22:00 GMT) on Monday, 3 February.

  16. Federal judge temporarily pauses Trump's freeze on fundingpublished at 22:08 Greenwich Mean Time 28 January
    Breaking

    A US judge has temporarily blocked President Donald Trump’s sweeping order to pause federal grants and loans.

    This is breaking news, stick with us for updates.

  17. Where do we stand now?published at 22:01 Greenwich Mean Time 28 January

    Caitlin Wilson
    Live editor in Washington, DC

    If you are just joining us, you might be a little confused by today's news about a federal funding pause from the Trump administration - you're not alone.

    We're working to understand which programmes could be affected and for how long.

    Here's the situation, though things may change as we get more information.

    • A memo leaked from the White House Office of Management and Budget (OMB) - and confirmed by the BBC's US news partner CBS - outlined a pause in federal grants, loans and other assistance, to start right now, at 17:00 EST (23:00GMT) Tuesday
    • It was unclear which programmes would be included in the freeze, as federal funding is funnelled to food stamps, the Medicare and Medicaid insurance systems, early childhood education programmes, farm subsidies, foreign aid, Social Security pension payments, student loans and hundreds of other projects
    • White House press secretary Karoline Leavitt told reporters during her very first briefing that money sent directly to individuals would not be included in the freeze, but did not specify which programmes would be included or how a funding pause could affect people who depend on them
    • Reports began to surface in the afternoon that websites related to some federally funded programmes were down, including for Medicaid payment state portals, Head Start early childhood education and community health centres
    • Several Democratic-led states said they would file a lawsuit challenging the policy, and Democratic lawmakers hit out against the plan, with Senate Minority Leader Chuck Schumer calling it "cruel, nasty and illegal"
    • A second OMB memo leaked to US media and not verified by the BBC appeared to try to clarify what funding would and would not stop, saying that funds for Medicaid, Head Start, small businesses and others would still be available

    Stick with us as we bring you the newest information as we get it.

  18. 'Not unusual to pause funding,' says Republican Senate majority leaderpublished at 21:43 Greenwich Mean Time 28 January

    Republican Senate majority leader John Thune speaking into a microphone, seated. shot from shoulders up, wearing dark blue suitImage source, Reuters

    We've heard what Democrats are saying about the funding freeze, so let's now check in with Republican Senate majority leader John Thune.

    “I think this is not unusual for an administration to pause funding and to take a hard look and scrub of how these programmes, how they're being spent, and how they interact with a lot of the executive orders that the President signed," Thune says during a press conference.

    "Some of you have asked specifically about programmes, any programmes that directly benefits an individual, Medicaid, SNAP - those types of programs are unimpacted by this," he adds.

    "What is impacted, obviously, is DEI (diversity, equity and inclusion) you know, the Green New Deal, things like that."

    • For context: DEI (Diversity, Equity and Inclusion) programmes aim to promote participation in workplaces by people from a range of backgrounds. Their backers say they address historical or ongoing discrimination and underrepresentation of certain groups, including racial minorities, but critics argue such programmes can themselves be discriminatory.
  19. Analysis

    Confusion may be part of Trump's planpublished at 21:35 Greenwich Mean Time 28 January

    Anthony Zurcher
    North America correspondent

    U.S. President Donald Trump looks on as he speaks to reporters aboard Air Force OneImage source, Reuters

    Donald Trump’s move to suspend federal grants and loans has closed the spigot on billions of dollars distributed across the country, leaving many Americans to wonder what the government is still doing – and what is being curtailed.

    That may be part of the plan.

    While the White House has been quick to insist that direct payments to individuals – Social Security retirement cheques, government-managed health insurance, food support and other funds Americans depend on – will continue uninterrupted, there is a lot of grey area.

    The federal government provides vast amounts of money to states and organisations that then offer services and support to individuals. Those are the programmes that could be adversely affected.

    White House Press Secretary Karoline Leavitt said on Tuesday that the pause was only a temporary step to allow Trump officials time to assess which spending programmes are wasteful or in conflict with the new president’s directives.

    The reality for an administration that sees the federal bureaucracy as too big and too influential, however, is that grinding the gears of government to a halt – even temporarily – is the first step in dismantling the machine.

    And that, in the end, is what they want.

  20. Mass confusion as clock ticks down to funding freeze deadlinepublished at 21:30 Greenwich Mean Time 28 January

    Holly Honderich
    Reporting from Washington DC

    We have just 30 minutes left until the White House's funding freeze begins.

    Democrats have warned the directive will cause widespread chaos.

    Some of that confusion is here, now.

    While White House press secretary Karoline Leavitt was defending the freeze in her first news conference on the job, state officials were reporting the online system they use to operate Medicaid - the health insurance programme for low-income and disabled Americans - was down.

    The system’s website attributed the delays to “executive orders regarding potentially unallowable grant payments”, seemingly paralysing - at least temporarily - payments the federal government owes to Medicaid programmes.

    These payments provide healthcare to some 70 million Americans, about one-fifth of the population.

    Leavitt said later that the White House was "aware" of the outage and the problem would be resolved.

    Asked whether Medicaid recipients would be impacted by the funding freeze, Leavitt replied: “I’ll check back on that and get back to you."