The National Council of Nonprofits, the American Public Health Association, Main Street Alliance and SAGE earlier on Tuesday sued over the directive issued by the acting head of the US Office of Management and Budget on Monday. It had been set to take effect at 2200GMT on Tuesday.
The groups said OMB lacked authority to unilaterally terminate all federal financial assistance programs across the government, and that the directive targeted grant recipients based in part on recipients’ rights to free expression and association under the US Constitution’s First Amendment.
Matthew Vaeth, OMB’s acting director, said the money would be put on hold while the administration of Republican President Donald Trump reviews grants and loans to ensure they are aligned with the president’s priorities, including executive orders he signed ending diversity, equity and inclusion programs.
Separately, states including New York, California and Massachusetts said they will file a lawsuit targeting the directive.
