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New York’s Attorney General Letitia James filed a lawsuit against President Donald Trump after his decision to freeze federal loans and grant programs.

James announced the lawsuit on Tuesday a day after the White House budget office’s memo ordering a temporary freeze on all federal grants and loans.

“My office will be taking imminent legal action against this administration’s unconstitutional pause on federal funding,” James wrote in a post on X. “We won’t sit idly by while this administration harms our families.”

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“This administration’s pause on federal funding is reckless and dangerous,” James added. “Programs in communities across the entire nation depend on this funding to support our families, and this action is only going to hurt them.”

At a press conference on Tuesday, James said, “Not only does this administration’s new policy put people at risk, but it is plainly unconstitutional.”

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The Trump administration explained that the President froze federal funds to see exactly where the money is going. On the campaign trail, Trump vowed to cut wasteful spending in government.

But moments before the freeze was set to take effect, U.S. District Judge Loren AliKhan in Washington, D.C., temporarily blocked federal agencies from implementing Trump’s executive order.

In her first press briefing on Tuesday, White House Press Secretary Karoline Leavitt explained that the freeze on federal loans and grants would not effect programs like Medicaid, Medicare or Social Security checks.

“I now have been asked this question four times,” Leavitt told journalists in the White House press room. “To individuals at home who receive direct assistance from the federal government: You will not be impacted by this federal freeze,” she said.

However, there are reports that some states struggled to access Medicaid portals on Tuesday. The states could not access funds for Medicaid, food stamps, welfare payments, and other essential services.

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