A federal judge has ruled to block the Trump administration’s attempt to freeze federal funding, putting a stop to President Trump’s plan to reshape government spending to fit his agenda.
U.S. District Judge Loren AliKhan ordered the government not to “implement, give effect to, or reinstate under a different name” the White House budget office’s directive to freeze federal assistance while the court looks at the situation.
“The freeze was a poorly thought-out plan from the start,” Judge AliKhan wrote. “The government wanted to stop up to $3 trillion in federal spending almost immediately, or they expected federal agencies to review every single grant, loan, and fund in less than 24 hours. That’s an almost impossible task.”
A group of nonprofit organizations filed a lawsuit last month against the Office of Management and Budget (OMB), challenging the freeze. Even though the memo that caused the lawsuit was withdrawn, the organizations argue that the administration still wants to carry out the freeze as part of its efforts to change how the federal government operates.
“It’s a priority for this administration to end certain policies, and they are using the threat of withholding billions – possibly trillions – in funding to push that agenda,” said Kevin Friedl, a lawyer for the plaintiffs, during a court hearing last week.
The lawsuit was filed by groups including the National Council of Nonprofits, SAGE (an LGBTQ advocacy group for older adults), the American Public Health Association, and the Main Street Alliance, a small-business group. They are represented by Democracy Forward, a liberal legal organization that has often challenged Trump’s policies in court.
Judge AliKhan had already stopped the administration from continuing the freeze while she considered whether to issue a temporary block. On Tuesday, she ruled that the plaintiffs had shown enough evidence to extend the block.
“Many organizations had to take extreme steps just to keep running,” AliKhan wrote. “The pause put critical programs for children, the elderly, and many others at serious risk. The public has a strong interest in preventing trillions of dollars from being frozen without cause.”
The nonprofit groups argued that more protection is needed because the Trump administration is still interested in carrying out the freeze as part of its efforts to realign government spending.
The Justice Department, however, argued that the case is no longer relevant since the memo was withdrawn.
“A general interest in carrying out a policy is not enough to keep a case going,” DOJ lawyer Daniel Schwei said.
Schwei argued that it was unlikely the nonprofits would lose funding in the future if the block were lifted and pointed out that the funding is now available to them. He also said it is normal for a new administration to temporarily pause funding to review its priorities.
The nonprofits strongly disagreed, arguing that the OMB cannot impose such a large freeze without an executive order from Trump.
This lawsuit is one of three challenges to the OMB memo, which caused confusion by ordering federal agencies to pause grants and loans. After the memo was withdrawn, White House press secretary Karoline Leavitt warned on social media that the administration’s action only applied to the memo itself, not to the freeze. This added to the confusion.
The Justice Department also argued that the administration still plans to freeze some funds as part of Trump’s executive orders on issues like gender identity, foreign aid, and diversity.
A group of Democratic state attorneys general, led by New York’s Attorney General Letitia James, has also filed a lawsuit against the White House budget office over the directive.
In that case, a different federal judge ordered the government to unfreeze federal grants, and when the administration didn’t follow the ruling, the judge demanded compliance. Leavitt’s social media post was used as evidence that the reversal was “only in name.” The Justice Department is appealing that ruling.
Pennsylvania Governor Josh Shapiro has also sued the Trump administration, saying federal grants to his state are still being suspended, despite the court orders in other cases. He has not yet asked for emergency relief.
