Federal Judge Temporarily Blocks Trump Administration Freeze on Federal Grants and Loans

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January 29, 2025 | Source: AP News | by Chris Megerian and Lindsay Whitehurst

WASHINGTON (AP) — A federal judge on Tuesday temporarily blocked a push from President Donald Trump to pause federal funding while his administration conducts an across-the-board ideological review to uproot progressive initiatives.

The order capped the most chaotic day for the U.S. government since Trump returned to office, with uncertainty over a crucial financial lifeline causing panic and confusion among states, schools and organizations that rely on trillions of dollars from Washington.

U.S. District Judge Loren L. AliKhan blocked the funding freeze only minutes before it was scheduled to take effect. The administrative stay, prompted by a lawsuit brought by nonprofit groups that receive federal money, lasts until Monday afternoon. Another court hearing is scheduled that morning to consider the issue.

The White House did not immediately comment on the order, which leaves unresolved a potential constitutional clash over control of taxpayer money. Democrats who have struggled to gain a foothold during Trump’s second term unleashed on the Republican president, describing his actions as capricious and illegal.

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