A federal judge temporarily blocked part of the Trump administration’s plan to freeze all federal aid, a move that had raised concerns among charities and educators.
US District Judge Loren L. AliKhan issued the ruling on Tuesday afternoon, preventing the government from halting funding for “open awards” already granted by the federal government.
The stay will last until at least Monday, February 3.
The judge’s administrative stay aims to preserve the status quo while she considers a challenge brought by a group of non-profits against the administration’s plan.
Non-profits, including the National Council of Nonprofits and the American Public Health Association, filed a lawsuit seeking to block the funding freeze, arguing that the OMB had no legal authority to implement the pause.
AliKhan expressed uncertainty about the full scope of the programs that would be affected by the freeze.
Trump’s move to freeze aid
On Monday, the White House Office of Management and Budget (OMB) ordered a temporary halt to all federal grants and loans, according to an internal memo.
The White House’s freeze also extends to various government programs, including foreign aid, diversity initiatives, and climate policy, according to the memo.
Agencies were required to submit details on over 2,000 programs under review, including funding for public health, education, and social services.
The memo required federal agencies to pause all activities related to the disbursement of financial assistance, although it specified that Social Security and Medicare benefits, as well as “assistance provided directly to individuals,” would not be affected.
The announcement caused concern across organizations that depend on federal funding, but the White House sought to ease worries, clarifying that the freeze was not as sweeping as it appeared.
“This is not a blanket pause on federal assistance and grant programs from the Trump administration,” White House Press Secretary Karoline Leavitt said in a briefing.
The freeze also disrupted several programs that rely on federal grants, including Head Start, which serves low-income children, and Meals on Wheels, which provides meals to vulnerable seniors.
The National Association of County and City Health Officials warned that the pause could severely impact local health departments.
She added that the pause was focused on Democratic priorities rather than a comprehensive cut, with agencies able to make a case to retain funding.
The freeze initially caused disruptions in state Medicaid systems, temporarily preventing access to federal funds for the program that covers over 72 million low-income Americans.
However, by the afternoon, several states regained access to the funding system, and Leavitt confirmed no payments had been affected.
The OMB later issued a Q&A confirming that mandatory programs like Medicaid and SNAP (food stamps) would continue without pause.
Challenges to Trump’s orders
Democratic lawmakers quickly criticised the freeze, with Senator Ron Wyden of Oregon accusing the Trump administration of attempting to strip health insurance from millions of Americans.
Sen. Patty Murray and Rep. Rosa DeLauro, expressed alarm over the broad scope of the freeze, urging the administration to uphold federal law and ensure the continued delivery of resources.
Senate Minority Leader Chuck Schumer also criticized the pause, warning that it could lead to significant disruptions in funding for essential services.
Trump’s executive order is also facing another legal challenge, this one from Democratic state attorneys general.
They argue that the freeze violates the US Constitution and could have severe consequences for states that rely heavily on federal aid.
Federal grants and loans support a wide range of essential programs, from education and health care to infrastructure and disaster relief, with hundreds of billions of dollars at stake.
The proposed cuts could also impact Republican-leaning states, where residents are significant beneficiaries of key federal programs.
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