US judge extends pause on Trump's plan to freeze federal grants, loans
1. White House press secretary says spending freeze remained in place — only memo from budget office was rescinded
A U.S. district judge on Monday extended a temporary injunction on President Donald Trump's freeze of federal funding for aid programs, citing the potential for "irreparable harm" to the plaintiffs, including the National Council of Nonprofits.
Judge Loren AliKhan's decision followed confusion over the 78-year-old Republican president's directive to the Office of Management and Budget (OMB) to freeze trillions in loans and grants. After facing widespread backlash, the OMB quickly issued a notification rescinding the freeze. However, White House Press Secretary Karoline Leavitt later clarified that the freeze on spending itself remained in place, leading to further confusion.
The move sparked an uproar, with the OMB issuing a terse notification stating the aid freeze had been "rescinded." However, Leavitt then confirmed that only the memo from the budget office had been rescinded, while the spending freeze remained intact—a clarification Judge AliKhan described as "disingenuous."
AliKhan had blocked the spending freeze last week pending a court hearing, and she extended the pause after the Monday ruling. In her 30-page opinion, the judge noted that the plaintiffs had presented declarations and evidence showing the nationwide panic caused by the freeze.
"Organizations with every conceivable mission—healthcare, scientific research, emergency shelters, and more—were shut out of funding portals or denied critical resources beginning on January 28," AliKhan wrote.
As much as $3 trillion in financial assistance was implicated by the freeze, a "breathtakingly large sum of money to suspend practically overnight," the judge said. AliKhan criticized the OMB for offering no rational explanation for the sudden freeze with less than 24 hours' notice.
She further stated that if the government wished to conduct a review of funding programs, it could do so without depriving millions of Americans of vital resources. AliKhan also emphasized that the appropriation of government resources is the responsibility of Congress, not the Executive Branch.
Many organizations are still awaiting the release of funds, and a district judge in Rhode Island had also temporarily blocked the freeze on federal aid spending in a case brought by 22 states.
