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Trump's $3 Trillion Funding Freeze Faces Legal Challenges

1/25/2026

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Story summary
  • U.S. President Donald Trump’s administration aims to freeze about $3 trillion in federal funding.
  • Courts issued temporary restraining orders blocking funding cuts, including a $4 billion National Institutes of Health (NIH) funding reduction.
  • Pennsylvania Governor Josh Shapiro sued to protect environmental projects affected by the freeze.
  • Unions challenged layoffs at the United States Agency for International Development (USAID) and the Consumer Financial Protection Bureau (CFPB).