Trump 2nd term updates: Trump says USAID is run by 'radical lunatics'

The comments came amid turmoil as DOGE took over USAID offices last week.

ByAlexandra Hutzler, Ivan Pereira, Emily Chang, Andrea Pineda-Salgado, Meredith Deliso, and Julia Reinstein
Last Updated: February 2, 2025, 11:11 PM EST

President Donald Trump made good on his threats to impose tariffs on some of the U.S.'s trading partners, announcing Saturday that he will levy 25% tariffs on some goods from Canada and Mexico and 10% on Chinese goods.

Experts have warned that tariffs of this magnitude will likely increase prices paid by U.S. and Trump appeared to acknowledge that “some pain” might be possible in the U.S.

Meanwhile, the Senate Finance Committee announced it will meet Tuesday, when it is expected to vote on the controversial nomination of Robert F. Kennedy Jr. for secretary of Health and Human Services.

Key Headlines

Here's how the news is developing:
Jan 28, 2025, 1:02 PM EST

Nonprofits, health groups and more sue to block memo freezing financial aid

A group of nonprofit groups, public health organizations, small businesses and LGBTQ advocates have asked the federal district court in Washington for an emergency injunction and temporary restraining order to block implementation of the White House Office of Management and Budget memo freezing all federal grant and loan distributions.

The lawsuit invokes the Administrative Procedures Act, which says that federal agencies must undertake changes in policy by providing justification for the action, adequately consider the real-world impacts, and accept public input.

The groups allege the Office of Management and Budget has done none of these things and has exceeded its authority.

-ABC News' Devin Dwyer and MaryAlice Parks

Jan 28, 2025, 12:37 PM EST

State officials report trouble accessing health, emergency funds

The White House memo on ceasing spending for federal financial aid programs is sparking alarm for some across the country.

Multiple state agencies are reporting they are encountering error messages as they try to access online portals that they typically use to draw down funds for emergency aid, community health centers, Head Start and even Medicaid -- despite the memo’s explicit carve out for Medicare and Social Security.

“This is sowing chaos and confusion everywhere,” one state official told ABC News.

-ABC News' Steven Portnoy

Jan 28, 2025, 11:05 AM EST

EPA temporarily pauses disbursement of federal financial aid

The Environmental Protection Agency is "temporarily pausing" its disbursement of federal financial aid in response to the order from the White House Office of Management and Budget, the agency confirmed in a statement to ABC News.

The EPA grants fund a wide array of national, state and tribal programs, including some to assist with air and water quality. A list of its grant programs can be found here.

The agency said it is "continuing to work with OMB as they review processes, policies, and programs, as required by the memorandum."

-ABC News' Kelly Livingston

Jan 28, 2025, 9:43 AM EST

Karoline Leavitt, youngest WH press secretary, to hold 1st briefing

Karoline Leavitt will make her first appearance behind the podium in the James S. Brady briefing room on Tuesday.

President Donald Trump, next to White House Press Secretary Karoline Leavitt, speaks to reporters while in flight on Air Force One en route Joint Base Andrews, Jan. 27, 2025.
Mandel Ngan/AFP via Getty Images

Leavitt, 27, is the youngest White House press secretary in history. She served as the spokesperson for Trump's 2024 campaign and transition team.

On Monday, she held her first gaggle with reporters aboard Air Force One. There, she fielded questions on Trump's upcoming moves on FEMA and his attempts to end birthright citizenship. She'll face more questions, likely about Trump's recent actions regarding the military and federal aid programs, at 1 p.m.