Judge Blocks Trump’s Funding Freeze as Nursing Homes Remain Unclear of Impact

Late Tuesday, a federal judge blocked a funding freeze issued by the White House Office of Management and Budget (OMB) that aimed to temporarily pause federal grants and loans. The freeze could have affected trillions of dollars in government spending and potentially impacted the nursing home sector as many public programs were halted.

U.S. District Judge Loren AliKhan blocked it from being implemented for now, minutes before it was to go into effect at 5pm. The judge’s order will expire on Feb. 3 at 5 p.m..

According to the original memo on the funding freeze, it requires federal agencies to cease all activities related to the obligation or disbursement of federal financial assistance, including the issuance of new grants. However, the pause will not affect Social Security or Medicare benefits, nor assistance provided directly to individuals.

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Prior to the block, the White House clarified late Tuesday that the freeze should not be applied to programs like Medicaid and food assistance that are funded through block grants to state and local governments which handle distribution, and the freeze is meant to give agencies time to review whether federal grants and loans are in compliance with recent executive actions taken by Trump.

The court said it needed more time to understand the impact of the funding freeze.

Rachel Reeves, senior vice president of public affairs at the American Health Care Association and National Center for Assisted Living (AHCA/NCAL), said the situation is evolving and being monitored closely.

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“We anticipate more developments in the coming days,” she said. “We will continue to encourage policymakers to ensure that providers have the resources they need to maintain and strengthen the continuity of care.”

Given lack of clarity on some levels, the precise impact is unclear at this time.

“We are assessing the impact of the pause on long-term and post-acute care providers. This is a rapidly changing situation, and we appreciate that the Administration has offered additional clarity following the announcement,” Reeves said.

That said, the funding freeze, which is also being legally challenged by Democrats, adds an additional layer of mystery to how it – and President Trump’s inaugural day executive orders halting new regulations – will impact nursing homes in the interim.

For now, it is known that health grants distributed by the Centers for Disease Control and Prevention (CDC), and state aid for disaster reconstruction, might also face delays, according to the Washington Post.

While it’s unclear if the funding ban will affect rebuilding efforts in communities ravaged by Hurricane Helene in late 2024, the budget office did state in the memo that “it may grant exceptions allowing federal agencies to issue new awards or take other actions on a case-by-case basis.”

“While Trump’s various executive orders include freezing all regulations for 90 days and temporary funding for various programs, there is still so much unknown at this point in time,” said Gallin.

Headquartered in Kentucky, Signature HealthCARE is a provider of long-term care, offering services across the health care continuum, including skilled nursing, home health, assisted living, and in-home care, with more than 60 locations across Indiana, North Carolina, Virginia, Kentucky, and Tennessee.