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Transcript

A Courtroom Win for Democracy Forward

Today Democracy Forward sued to stop the Trump Administration from freezing federal spending to vital programs. The fight isn't over. CEO Skye Perryman tells News Not Noise what comes next.

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Skye Perryman is the CEO of Democracy Forward, the organization that took the Trump administration to court today over its attempt to freeze spending on federal grants and loans. She scored a victory. U.S. District Judge Loren L. AliKhan issued a temporary restraining order, preventing the Trump administration from halting payments for grants, loans and programs that receive government assistance. I spoke to Perryman about the quickly constructed case; their arguments and what comes next. 

We also discuss:

  • Their lawsuit against DOGE.

  • Their lawsuit against ICE raids in houses of worship.

  • Potential lawsuits regarding the firing of Inspectors General.

  • Potential lawsuits regarding the administration’s new rules limiting the actions of the Centers for Disease Control (CDC), the National Institutes of Health (NIH) and comms with the World Health Organization (WHO).

  • Her faith in the judiciary to defend US laws and institutions. 

  • The role of Congress.

  • Resources for federal employees and more.  

News Not Noise is a reader-supported publication. We made this interview free so everyone can see it. But we need your support to keep doing this work. Please consider becoming paid subscriber.

Democracy Forward is a non-profit organization of lawyers, policy experts and communicators set up to defend US institutions and individuals in court. You can find their website here. To those of you who keeping asking me, “Is anyone doing anything?” this interview is for you. I’ve included more information about the group and resources they offer below. 

The news on federal funds:

Here’s some background. Last night the White House Office of Management and Budget issued a memo directing all federal agencies to freeze federal loans and grants starting at 5pm EST Tuesday. The memo specified that Medicare and Social Security were exempt. That seemed to put every other grant, loan or assistance program in jeopardy. To say this triggered a panic is an understatement. 

Who did this impact? 

In its release, OMB nonsensically claimed the freeze was intended to target “financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.” I say it’s nonsensical because the vast majority of vital programs in jeopardy didn’t fall under those categories and could not reasonably be described as products of DEI or “woke ideology” (unless you think that providing nutrition assistance or health care to kids in poverty is “woke”). The OMB memo implicated funds for programs ranging from HeadStart to WIC and LIHEAP (the low income heating assistance program). It meant universities, hospitals, student loan programs and too many non-profits to name had no idea if they’d have funds to operate some programs by next week.  OMB said that the freeze wouldn’t impact funds that go to “individuals” but offered no clarity about which programs this exempted.

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Medicaid Lock-out

In the White House press briefing today, new Press Secretary Karoline Leavitt said entitlement programs would be spared but she couldn’t say whether that included Medicaid. Shortly after the briefing, Medicaid offices around the country reported that they were unable to access their federal portals. Non-profits of all stripes said they were having difficulties as well. Note: Medicaid helps provide health coverage to almost 80 million Americans – one out of five Americans. 

Impoundment Act

In the video below (posted to Instagram last night), I said this abrupt freeze was not just dangerous it was also illegal. The Impoundment Act makes clear that the executive cannot withhold appropriated funds without Congressional approval. Congress controls the purse. Despite this, members of Congress were muted in their public response. (Yes, some Democrats spoke out but overall Congress did little to defend its authority.) 

Over the course of the day the White House issued amended guidance, clarifying that certain programs wouldn’t be touched. They insisted that the issues with the Medicaid portal were not related to the freeze and many are back online tonight, though with some reported issues.  

This afternoon, shortly before the 5pm deadline, Democracy Forward went before a federal judge. They asked for a temporary restraining order on behalf of organizations that would be impacted by the freeze. This included  the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE. The federal judge granted an administrative stay until Monday, when they will be back in court making their arguments. This fight continues on Monday.

You can hear about the case, and their arguments plus all the topics mentioned above in my conversation with Skye Perryman. Her team won’t be getting much sleep this weekend.  

Democracy Forward resources:

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