Federal Judge Temporarily Halts Trump Administration’s Federal Aid Freeze

A federal judge has blocked former President Donald Trump’s freeze on federal aid programs, allowing time for the courts to assess the broader implications of the order.

U.S. District Judge Loren AliKhan issued the decision just minutes before the directive from Trump’s budget office was set to take effect on Tuesday. The freeze, which aimed to suspend disbursement of congressionally appropriated funds, will now be paused until at least Feb. 3 at 5 p.m.

The judge, appointed by President Joe Biden, referred to the decision as a “brief administrative stay” to preserve the status quo as the legal process unfolds.

“I think there is the specter of irreparable harm,” AliKhan said during the hearing.

The ruling marks a victory for nonprofit organizations and public health advocates who argued that even a short-term freeze could have dire consequences for individuals dependent on federal aid and for the workers who deliver those services. The groups also criticized the Trump administration’s effort, alleging it violates First Amendment rights by targeting organizations that promote diversity, equity, inclusion (DEI), and “Gender Ideology Extremism.”

“They are going to lose funding in 10 minutes because they support transgender equality instead of supporting something that the administration finds more palatable,” said Jessica Morton, an attorney representing the National Council of Nonprofits and other groups.

The Trump administration maintained that the freeze was narrowly tailored and would not immediately cut off vital services. Justice Department attorney Daniel Schwei argued that the plaintiffs had not demonstrated an urgent need to halt the order, asserting that further guidance from the administration should mitigate concerns.

“They request sweeping relief … not tethered to any identified grant programs,” Schwei said during a brief virtual hearing. “It would be appropriate to allow these issues to be addressed on a more orderly timeframe … I think it would be preemptive for the court to order relief just based on the suspicion that there might be some harm at some point.”

In response to the freeze, a coalition of Democratic state attorneys general also announced plans to file a lawsuit, signaling broader legal challenges to the Trump administration’s funding directive.

The case is expected to proceed as affected groups and government officials prepare for further court deliberations in the coming days.

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