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Federal judge blocks Trump plan to freeze spending on grants, loans • Alabama Reflector
Federal judge blocks Trump plan to freeze spending on grants, loans
by Jennifer Shutt, Alabama Reflector
January 31, 2025
WASHINGTON — A federal district judge issued a temporary restraining order on Friday, blocking the Trump administration from moving forward with a proposed spending freeze on grants and loans.
Chief Judge John J. McConnell Jr. of the U.S. District Court in Rhode Island wrote in the 13-page ruling the administration’s “actions violate the Constitution and statutes of the United States.”
“Federal law specifies how the Executive should act if it believes that appropriations are inconsistent with the President’s priorities–it must ask Congress, not act unilaterally,” McConnell wrote. “The Impoundment Control Act of 1974 specifies that the President may ask that Congress rescind appropriated funds. Here, there is no evidence that the Executive has followed the law by notifying Congress and thereby effectuating a potentially legally permitted so-called ‘pause.’”
The lawsuit, filed by Democratic attorneys general from 22 states and the District of Columbia, stems from a two-page memo the Office of Management and Budget issued Monday evening.
The document called for a freeze on all federal grants and loans, leading to widespread confusion about how far reaching the halt could be and how long it would last.
While the memo said it wouldn’t impact Social Security or Medicare, it was silent on Medicaid and hundreds of other federal programs, including those that go to veterans, schools and food support programs.
A separate document from OMB listed thousands of programs that were subject to the original OMB memo.
District Judge Loren L. AliKhan of the U.S. District Court of the District of Columbia issued a short-term administrative stay of OMB’s actions Tuesday, blocking the Trump administration from implementing the freeze. That ruling was in response to a separate lawsuit over the OMB memo filed by the National Council of Nonprofits, American Public Health Association and Main Street Alliance.
The following day, the Trump administration rescinded the OMB memo shortly before McConnell heard from the attorneys in the lawsuit filed by the attorneys general.
White House press secretary Karoline Leavitt posted on social media that rescinding the memo was “NOT a rescission of the federal funding freeze.”
“It is simply a rescission of the OMB memo,” Leavitt wrote. “Why? To end any confusion created by the court’s injunction.”
“The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented,” she added.
Her comments were noted in Judge McConnell’s temporary restraining order.
“Based on the Press Secretary’s unequivocal statement and the continued actions of Executive agencies, the Court finds that the policies in the OMB Directive that the States challenge here are still in full force and effect and thus the issues presented in the States’ TRO motion are not moot,” McConnell wrote.
An attorney for the U.S. Justice Department had argued during a virtual hearing before McConnell on Wednesday that the case was no longer necessary since OMB rescinded the original memo.
McConnell’s temporary restraining order will stay in place until he rules on an upcoming request from the Democratic state attorneys general for a preliminary injunction.
McConnell wrote in the temporary restraining order that the Trump administration’s assessment that it has a responsibility “to align Federal spending and action with the will of the American people as expressed through Presidential priorities … is a constitutionally flawed statement.”
“The Executive Branch has a duty to align federal spending and action with the will of the people as expressed through congressional appropriations, not through ‘Presidential priorities,’” McConnell wrote.
The U.S. Constitution gives Congress the power to approve and direct federal spending in Article 1, Clause 9, Section 7. Lawmakers have used that over time to approve mandatory spending on programs like Medicare, Medicaid and Social Security, as well as discretionary spending on the dozen annual appropriations bills.
Those measures fund the vast majority of federal departments and agencies, including Agriculture, Energy, Homeland Security, Interior, Justice, State, Transportation, and Housing and Urban Development.
Those bills include hundreds of grant and loan programs, many of which were frozen by the original OMB memo, which McConnell wrote in his temporary restraining order would have significantly impacted states.
“The Executive Orders threaten the States’ ability to conduct essential activities and gave the States and others less than 24 hours’ notice of this arbitrary pause, preventing them from making other plans or strategizing how they would continue to function without these promised funds.” McConnell wrote.
Since Congress approved funding for those programs, McConnell wrote, “the Executive’s refusal to disburse them is contrary to congressional intent and directive and thus arbitrary and capricious.”
Democratic attorneys general who filed the lawsuit before McConnell are from New York, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.
Last updated 4:08 p.m., Jan. 31, 2025
Alabama Reflector is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Alabama Reflector maintains editorial independence. Contact Editor Brian Lyman for questions: info@alabamareflector.com.
The post Federal judge blocks Trump plan to freeze spending on grants, loans • Alabama Reflector appeared first on alabamareflector.com
News from the South - Alabama News Feed
When hospitals buy physician practices, prices go up
by Anna Claire Vollers, Alabama Reflector
August 7, 2025
This story originally appeared on Stateline.
As more hospitals have gobbled up private physician practices, costs for childbirth and other services have gone up, according to a new study.
Since the early aughts, the share of physicians in the United States working for hospitals has nearly doubled, according to the study published by the National Bureau of Economic Research, a nonprofit research organization.
And as fewer doctors work in physician-owned practices, patients or their insurers end up paying more, the study’s authors found.
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For example: Two years after a hospital buys an OB-GYN practice, prices for labor and delivery jump an average of $475 and physician prices rise by $502, according to the study. Researchers focused on births, which are the most common reason for hospital admission among people with private insurance.
This rapid acquisition by hospitals is reshaping a U.S. industry once dominated by tens of thousands of small, physician-owned practices.
Only about 42% of U.S. physicians work in a physician-owned private practice, according to the most recent survey data from the American Medical Association. Nearly 47% work for hospitals, a sharp rise over the past several years. Most emergency room physicians are now employed by hospital systems or by private equity-owned staffing groups.
The new research offers further evidence for how hospital acquisitions of private practices “can result in anticompetitive price increases,” said Matthew Grennan, one of the study’s authors and an associate professor of economics at Emory University, in a news release.
“As a result, I think economists and others in the antitrust community are likely to give more careful consideration to these potential sources of harm,” he said.
Medical debt is a leading cause of bankruptcy in the United States, with about 14 million Americans owing more than $1,000 in medical debt, according to research nonprofit KFF.
These post-merger price increases are driven by reduced competition, Grennan and his fellow researchers found. Yet there’s been little effort by federal or state regulators to halt hospital mergers that could lead to higher prices for consumers.
But states have taken some steps toward lowering medical costs in recent years.
Bipartisan groups of lawmakers in more than a dozen states have addressed so-called “facility fees,” which are charges that some hospitals tack on for patient visits to hospital-owned physician offices.
This year in Oklahoma, Republican lawmakers passed a bill requiring hospitals to make the cost of many of their services more transparent to patients so they’re aware of the costs. Providers can face penalties for noncompliance. A similar Oklahoma law authored by Democrats and passed last year requires debt collectors to submit evidence of a hospital’s compliance with price transparency rules before filing to collect on medical debts from patients.
Some states have capped the rates hospitals or physicians can charge. Colorado sets provider and hospitals rates based on a specific formula if insurance plans aren’t able to lower peoples’ premiums to a certain level, while Montana and Oregon limited the amount hospitals and other providers can charge for their state employee health plan.
Stateline reporter Anna Claire Vollers can be reached at avollers@stateline.org.
Stateline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: info@stateline.org.
Alabama Reflector is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Alabama Reflector maintains editorial independence. Contact Editor Brian Lyman for questions: info@alabamareflector.com.
The post When hospitals buy physician practices, prices go up appeared first on alabamareflector.com
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Center-Left
This article presents a fact-based critique of hospital consolidations and their impact on healthcare costs, emphasizing rising prices and decreased competition. It highlights concerns typical of center-left viewpoints, such as the need for regulatory oversight and transparency to curb corporate practices that may harm consumers. The inclusion of bipartisan legislative examples and references to policy responses adds balance, but the focus on the negative consequences of market consolidation aligns with center-left priorities on healthcare affordability and consumer protection.
News from the South - Alabama News Feed
Alabama Ethics Commission: DAs can do jobs outside official working hours
by Ralph Chapoco, Alabama Reflector
August 6, 2025
The Alabama Ethics Commission unanimously voted Wednesday to adopt an advisory opinion allowing district attorneys to be compensated for another job done outside working hours for their public work.
Staff applied an advisory opinion issued by the Alabama Attorney General’s Office that stated that while district attorneys and assistant district attorneys are on call at all hours, they are not considered working unless they are summoned to work in their official capacity.
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“We concur with that opinion and do not consider time outside of regular business hours as time for the purposes of 5-C,” said Brian Paterson, assistant general counsel for the Alabama Ethics Commission.
5-C is a rule prohibits public service employees and officials from using public office for private gain.
The Alabama Ethics Commission in 1998 ruled that a police chief is always working and could not work anywhere while the individual is serving as police chief.
“This opinion would overrule that ‘98 opinion,” Paterson said.
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Alabama Reflector is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Alabama Reflector maintains editorial independence. Contact Editor Brian Lyman for questions: info@alabamareflector.com.
The post Alabama Ethics Commission: DAs can do jobs outside official working hours appeared first on alabamareflector.com
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Centrist
The article reports on the Alabama Ethics Commission’s unanimous decision to allow district attorneys to work outside their official hours without violating ethics rules. The language is neutral and factual, focusing on the technicalities of the advisory opinion and its implications without editorializing or framing the decision as politically charged. It simply explains the legal and procedural aspects of the ruling, citing relevant officials and previous decisions. There is no evident ideological slant or partisan framing, indicating balanced, straightforward reporting.
News from the South - Alabama News Feed
News 5 NOW at 8:00am | August 6th, 2025
SUMMARY: A foggy Wednesday morning in Mobile begins with updates on local news. The historic Ace Theater is undergoing a $3.5 million renovation to become a jazz center by early 2027. A 9-person fight at a mobile home park was caught on video, involving a gun but no arrests yet. Brew y’all Coffee replaced its stolen and destroyed mobile trailer, recovering from a $40,000 loss. Mobile City Council candidate Samantha Ingram faces a lawsuit over residency claims, which she denies. Tonight in Daphne, a popular free weather radio programming event will be held from 3 to 7 p.m. Finally, the VMAs are generating buzz, with Lady Gaga leading nominations.
Streaming on “News 5 Now”: A violent brawl caught on camera, a new look coming to an old Mobile theater, and our latest Weather Radio Programming event is today.
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