Skip to content
Search

Latest Stories

What We're Watching

The far-reaching impact of Trump’s funding freeze

The far-reaching impact of Trump’s funding freeze
REUTERS
Make us preferred on Google

A judge in the District of Columbia on Tuesday blocked Donald Trump’s move to freeze federal funding until Feb. 3. District Judge Loren AliKhan’s decision dropped just minutes before the order was meant to take effect.

Trump’s directive, issued late Monday, applied to a vast swath of federal funding recipients – including disaster relief, education grants, and transportation funding – putting 2,600 programs under review. And while Medicaid was not supposed to be impacted, states said Tuesday that the online portals that supply Medicaid funding were down briefly in all 50 states.


Tuesday’s decision temporarily blocks the Trump administration’s order freezing federal funding and halting US foreign aid – and will hold through Monday afternoon. In the interim, the Trump administration offered approximately two million federal workers payouts to resign, warning that the majority of federal agencies will be facing downsizing.

Aid groups abroad fear that a halt to US-funded work could have dire and broad-reaching consequences – like NGOs and refugee camps losing funding. The State Department did restart the worldwide HIV program on Tuesday, citing the deadly effects of stopping the distribution of medication in low-income countries.

While critics are sounding the alarm that Trump is overstepping his presidential authority, Eurasia Group US expert Jon Lieber said we need to keep an eye on the legal process. While the president is “exercising a very muscular interpretation of executive power,” many of Trump’s executive orders will be challenged and shut down in the courts, he explained, as seen by the DC court decision. “They will be sued, and the courts will rule on what powers they have to fire civil servants, to cut spending, to upend the federal bureaucracy, etc.”

“The real test for the system will come when they are faced with a court order that curtails their agenda, and they either follow the law or continue to flout it.”

More For You

A laborer works at the Congolese state mining company Gecamines' copper concentrator at its Kambove operation in the southern province of Katanga

A laborer works at the Congolese state mining company Gecamines' copper concentrator at its Kambove operation in the southern province of Katanga on January 31, 2013.

REUTERS/Jonny Hogg
The DRC wants to keep more of its mineral wealth at homeThe Democratic Republic of Congo has reportedly banned exports of copper and cobalt concentrates, materials which are refined and later used by countries like China to manufacture widely used technology. The goal is to force more processing at home and capture a larger share of profits [...]
Scripting a major political upset in his maiden electoral contest, Kishor defeated Bharatiya Janata Party (BJP) nominee Neeraj Kumar Sinha by a margin of 19,324 votes, dismantling the ruling party's three-decade stronghold over the urban constituency.

Jan Suraaj Party supporters celebrating after party win in Bankipur By-Election at party office on August 3, 2026 in Patna, India.

Santosh Kumar/Hindustan Times/Sipa USA
Is India’s “Cockroach” party infestation spreading?Prime Minister Narendra Modi’s ruling Bharatiya Janata Party (BJP) has lost a by-election for a seat in the eastern state of Bihar that it held for three decades. The winner, head of a new local opposition party called Jan Suraaj (Good Governance), focused on unemployment, education, and other [...]
Brazilian Senator Flavio Bolsonaro, who is to be announced as candidate for Brazil's presidential elections, attends the national convention of the Liberal Party (PL)

Brazilian Senator Flavio Bolsonaro, who is to be announced as candidate for Brazil's presidential elections, attends the national convention of the Liberal Party (PL) in Sao Paulo, Brazil, July 25, 2026.

REUTERS/Jean Carniel
Bolsonaro rushes for a running mateBrazilian presidential candidate Flávio Bolsonaro has until tomorrow to find a running mate, but he may be scrambling after his top choice was barred from joining his ticket by her own party. Last week, Bolsonaro announced conservative Senator Tereza Cristina Dias was his preferred running mate for the October [...]
An electronic board displays the exchange rate of the Japanese yen against the U.S. dollar in Minato Ward, Tokyo on August 3, 2026.
An electronic board displays the exchange rate of the Japanese yen against the U.S. dollar in Minato Ward, Tokyo on August 3, 2026.
REUTERS/The Yomiuri Shimbun
The US and Japan stage a “Yentervention”Japan and the United States confirmed today they jointly intervened to prop up the Japanese yen, the first such action since 2011. Washington purchased an estimated $5 to 10 billion worth of yen, though the White House has not confirmed the exact amount. The Japanese currency recently plunged to a 40-year [...]