A U.S. judge has extended an order preventing President Donald Trump’s administration from implementing a massive freeze on trillions of dollars in federal grants, loans, and financial aid.
U.S. District Judge Loren AliKhan, appointed by former President Joe Biden, ruled that despite the White House’s withdrawal of an initial memo ordering the freeze, there remained a risk that the administration could reinstate the funding pause.
The freeze was originally justified as a review of federal spending, ensuring alignment with Trump’s executive orders on diversity programs and climate change initiatives. However, nonprofits, small businesses, and Democratic state attorneys general challenged it in court, arguing it could cause catastrophic harm.
The ruling marks a legal setback for Trump’s administration, with the case likely to continue in higher courts.