A federal judge has thrown a wrench into the Trump administration’s sweeping halt on federal loans and grants, granting temporary relief to advocacy groups who argued the move would cause widespread harm.
In a Washington, D.C., courtroom, U.S. District Judge Loren AliKhan ordered a pause on the administration’s directive to block already-approved funding until at least February 3. The ruling, aimed at preserving the “status quo,” does not reinstate funding for programs already terminated or prevent new freezes from being enacted.
This development comes after the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE filed a lawsuit challenging the directive. The groups claim the Office of Management and Budget (OMB) overstepped its authority, accusing the administration of targeting recipients based on constitutional rights like free speech and association.
OMB’s acting director, Matthew Vaeth, defended the freeze, stating the funds were being reviewed to align with President Trump’s priorities, including recent executive orders eliminating diversity, equity, and inclusion initiatives. However, Vaeth emphasized that programs delivering essential services would remain untouched.
The dispute intensified as a coalition of attorneys general from 22 states and Washington, D.C., launched a separate lawsuit, citing confusion over the administration’s evolving stance on the scope of the freeze.
Judge AliKhan has scheduled a follow-up hearing for Monday to determine the next steps in this high-stakes clash over federal funding.
