A U.S. federal district judge has temporarily blocked a controversial plan by the Trump administration to freeze federal aid spending.
Judge Loren AliKhan granted an administrative stay on Tuesday, halting the freeze for a week and scheduling a hearing for further legal arguments on Monday morning.
The freeze stems from a memo issued by the Office of Management and Budget (OMB), which directed federal agencies to pause activities associated with the obligation or disbursement of all federal financial assistance. The memorandum specifically targets programs outlined in Trump’s executive orders, including funding for foreign aid, non-governmental organizations (NGOs), diversity, equity, and inclusion (DEI) initiatives, gender-related policies, and the Green New Deal.
In response to the release of the memo, White House Press Secretary Karoline Leavitt briefly addressed the matter in her first press release. Leavitt criticized the Biden administration’s spending practices and lauded Trump’s “responsible measure” in curbing unnecessary financial allocations.
However, the White House issued a fact sheet that clarifies the pause applies only to programs, projects, and activities linked to executive orders that the administration considers detrimental to the national interest.
The pause was met with swift opposition. Democracy Forward, a national legal advocacy organization, filed a complaint on behalf of several nonprofit groups, including the National Council of Nonprofits, the American Public Health Association, and Main Street Alliance.
The complaint argues that the memo lacks legal authority, fails to consider the impact on grant recipients, and potentially infringes upon the First Amendment rights of grant recipients without justifiable cause.
“We are grateful for this administrative stay, as it provides much-needed relief for millions of individuals who depend on federal assistance,” Democracy Forward said in a statement. “This pause allows us to prepare more comprehensive arguments and challenge this hasty, ill-considered decision.”
The legal community is closely watching the developments, as attorneys general and other litigators have filed lawsuits to block the OMB directive.
The ruling grants them more time to prepare their cases, which may significantly influence the future of federal aid distribution.
