A U.S. district judge has temporarily halted President Donald Trump’s order to freeze hundreds of billions of dollars in federal grants and loans, just minutes before it was set to take effect on Tuesday. Judge Loren AliKhan issued the order, pausing the directive until next Monday at 5:00 PM EST (10:00 PM GMT), in response to a lawsuit filed earlier in the day by organizations representing grant recipients.
The lawsuit claims that the White House’s temporary freeze on already approved funding is unlawful. The directive, issued by the Office of Management and Budget (OMB), instructed federal agencies to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.” According to the administration, the move was meant to allow time for an assessment of whether certain grants and loans align with their agenda.
White House Press Secretary Karoline Leavitt defended the order, saying it was intended to ensure that tax dollars are spent responsibly. She stated that the freeze would allow the government to cut back on funding for initiatives related to “woke” gender issues and diversity programs. However, the directive sparked widespread confusion and anger, particularly among non-profits and research institutions that rely on federal grants for their operations.
Judge AliKhan’s ruling preserves the status quo until an oral argument can be held next Monday. If implemented, the White House directive could affect billions of dollars earmarked for various federal programs, including disaster relief and cancer research. Several states reported difficulties accessing Medicaid funds on Tuesday, though the White House later clarified that Medicaid and other direct-benefit programs such as Social Security and SNAP (food stamps) would not be affected.
Diane Yentel, president of the National Council of Nonprofits, celebrated the judge’s decision, stating in a post on X that their lawsuit had successfully blocked what she described as a “reckless plan to halt federal funding.” The lawsuit argues that Trump’s order aims to “eradicate essentially all federal grant programs” without any legal justification, creating ripple effects throughout the nation.
Meanwhile, a coalition of Democratic states has filed a separate lawsuit challenging the order as unconstitutional. Prominent Democrats, including Senator Patty Murray and Congresswoman Rosa DeLauro, have expressed alarm, warning that the funding freeze could lead to missed payrolls, rent payments, and widespread economic disruption. Senate Minority Leader Chuck Schumer characterized the move as a chaotic and harmful decision that could have devastating consequences across the country.
The upcoming hearing on Monday will determine whether the freeze will be permanently blocked or allowed to proceed, a decision that could significantly impact federal funding distribution nationwide.
