US Judge Extends Pause on Trump Administration's Funding Freeze

A federal judge in Washington, Loren AliKhan, has decided to prolong a temporary hold on the Trump administration's initiative to freeze federal loans and grants. She expressed concerns that the funding freeze could severely impact organizations that rely on government assistance to fulfill their missions. The judge highlighted that the funding disruptions could lead to "potentially catastrophic" outcomes for these entities.

AliKhan's ruling came at the request of advocacy groups and is now enforced alongside a previous injunction issued by a federal judge in Rhode Island, which stemmed from a coalition of Democratic attorneys general representing 22 states and Washington D.C. Last week, she had initially implemented a brief administrative pause that prevented the Office of Management and Budget (OMB) from proceeding with the freeze while she evaluated the necessity of a more extended restraining order.

The OMB had argued that the funding freeze was essential to align with President Trump's executive orders relating to immigration, climate policy, diversity, and other critical issues. After attempting to clarify the situation, the OMB ultimately retracted its memo, with the administration contending that such a withdrawal should terminate the ongoing lawsuit brought by advocacy groups.

However, Judge AliKhan maintained that a longer restraining order was still warranted due to lingering funding concerns and noted that OMB could potentially reintroduce the freeze at any time. She emphasized that simply following the president's directives cannot grant the OMB unchecked power, describing the financial implications of the memo as encompassing nearly $3 trillion—a significant sum that could be suspended almost instantaneously. Furthermore, she characterized the policy as possibly capricious and suggested it might conflict with Congress's exclusive authority over federal spending as outlined in the U.S. Constitution.