A U.S. judge extended a pause on the Trump administration’s plan to freeze federal loans and grants, citing potential violations of Congress’s authority over government spending. U.S. District Judge Loren AliKhan emphasized the catastrophic impact the funding freeze could have on organizations reliant on federal funds. This ruling, prompted by advocacy groups, adds to a similar order issued in Rhode Island supported by Democratic attorneys general.

AliKhan’s initial administrative pause prevented the Office of Management and Budget (OMB) from implementing the policy, which aimed to align funding with Trump’s executive orders. Despite OMB’s withdrawal of the memo, AliKhan deemed a temporary restraining order necessary due to ongoing funding issues and the potential for OMB to reissue the policy unchecked.

The judge criticized the policy’s lack of clarity on the freeze’s duration and its challenge to Congress’s spending authority. She highlighted the significant $3 trillion at stake and emphasized that the administration’s actions may have overstepped constitutional boundaries.

AliKhan’s order will stand while she considers a longer preliminary injunction. The Department of Justice, representing the administration, refrained from commenting. The decision was praised by the National Council of Nonprofits for preventing a reckless funding halt. Advocacy groups expressed concerns over continued difficulties in accessing grants despite the memo’s withdrawal. The Justice Department maintained Trump’s authority to shape funding priorities through unchallenged executive orders.