US Judge blocks Trump’s freeze on federal grants and loans

A US judge temporarily blocked President Donald Trump’s plan to freeze billions of dollars in federal grants and loans, just moments before it was set to take effect. Judge Loren AliKhan issued the temporary halt after a group of organizations filed a lawsuit, arguing that the freeze violated the law by stopping already approved funding.

The judge’s order will remain in effect until next Monday at 5:00 PM EST, when an oral argument will be held. The White House had intended the freeze to allow the new administration time to review which grants and loans aligned with their agenda. The acting head of the White House budget office instructed federal agencies to pause all financial assistance activities, causing confusion over which programs would be impacted.

White House Press Secretary Karoline Leavitt defended the pause, calling it a step toward “being good stewards of tax dollars.” She emphasized the freeze would reduce spending on “woke” gender issues and diversity programs. However, the pause sparked widespread anger and confusion.

Non-profits, research organizations, and other recipients of federal funding feared the freeze would result in immediate financial losses. Many people who rely on government grants and loans found themselves in uncertain situations, with billions of dollars potentially at stake for programs like disaster relief and cancer research.

Diane Yentel, president of the National Council of Nonprofits, which brought the lawsuit, celebrated the judge’s ruling. She wrote on X that the court had blocked the “reckless” freeze, which she argued aimed to dismantle federal grant programs. The lawsuit accused the Trump administration of making the move without legal justification and warned of widespread negative effects.

This legal battle is separate from another lawsuit filed by a coalition of Democratic states, which also aimed to block the freeze, claiming it was unconstitutional. White House Deputy Chief of Staff Stephen Miller defended the freeze, insisting it would help bring “credit control” and would not affect critical programs like Meals on Wheels.

He further reassured the public that Medicaid and Social Security benefits would not be impacted, although some states had reported issues accessing funds through Medicaid.

Despite reassurances, top Democrats expressed serious concerns. Senator Patty Murray and Congresswoman Rosa DeLauro sent a letter to the White House, warning that the freeze could lead to devastating consequences across the nation. Senate Democratic leader Chuck Schumer called the plan a “chaotic” move that would disrupt payrolls, rent payments, and essential government services.

As the legal proceedings unfold, the judge’s temporary halt has provided a brief reprieve for organizations worried about losing vital federal support. The situation has put the Trump administration’s freeze plan in the spotlight, with debates intensifying over its potential consequences for millions of Americans.