Trump blocked from imposing sweeping federal funding freeze
Source: Reuters
February 25, 2025 3:30 PM EST Updated 2 min ago
Feb 25 (Reuters) - A U.S. judge on Tuesday extended an order blocking President Donald Trump's administration from instituting a sweeping freeze on trillions of dollars in federal funding by pausing grants, loans and other financial support.
U.S. District Judge Loren AliKhan in Washington wrote tab that while some funds had become unfrozen since she first temporarily blocked the administration's spending pause, there remained a risk the administration might again try to shut off funding.
The judge, an appointee of Democratic former President Joe Biden, said for those reasons she agreed with groups representing nonprofits and small business that a preliminary injunction was necessary blocking a further funding freeze. "The injunctive relief that defendants fought so hard to deny is the only thing in this case holding potentially catastrophic harm at bay," she wrote.
Those groups sued after the White House's Office of Management and Budget on January 27 issued a memo directing federal agencies to temporarily pause spending on federal financial assistance programs. That memo said the freeze was necessary while the administration reviewed grants and loans to ensure they are aligned with Trump's executive orders, including ones ending diversity, equity and inclusion programs and directing a pause on spending on projects seeking to combat climate change.
Read more: https://www.reuters.com/world/us/trump-blocked-imposing-sweeping-federal-funding-freeze-2025-02-25/
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