Court ruling or official announcements by U.S. District Court

Judge Halts Trump's Freeze on Trillions in Federal Aid Before It Takes Effect

Jan 28, 2025, 10:10 PM

A federal judge has temporarily blocked the Trump administration's freeze on federal grants and loans that could total trillions of dollars. U.S. District Judge Loren AliKhan issued an administrative stay just minutes before the freeze was set to take effect at 5 p.m. ET, pausing the directive until February 3rd while further litigation proceeds. The freeze, announced by the Office of Management and Budget (OMB), aimed to halt payments of federal grants, loans, and other assistance to various programs across the U.S., excluding benefits like Medicare, welfare, and SNAP as clarified by the White House. The temporary halt follows lawsuits filed by 23 state attorneys general and advocacy groups, who argue that the freeze is "arbitrary and capricious" and could have devastating effects. The judge's action is intended to preserve the status quo until a hearing set for Monday morning.