Federal Grants Saved: Judge Blocks Trump Administration's Financial Freeze

A federal judge has temporarily blocked the Trump administration from freezing federal grants and loans after a challenge by Democratic state attorneys general. The policy, aimed at pausing funding for vital services, was deemed unconstitutional and could significantly impact public resources.

In a critical legal decision on Friday, a federal judge halted the Trump administration's attempt to freeze federal grants and loans. This move, challenged by a coalition of Democratic state attorneys general, aims to secure vital government-funded services at risk under the White House's policy.

U.S. District Judge John McConnell, overseeing the case in Providence, Rhode Island, underscored that Congress did not authorize the president to broadly pause all federally directed funds. His ruling follows a contested memo from the Office of Management and Budget, now retracted, which sought to review funding alignment with presidential priorities.

The paused directive potentially affected over $1 trillion in grants for essential sectors such as health care and education. Amid these developments, the Department of Justice continues to advocate for the now-blocked policy, highlighting ongoing tensions between federal and state governance.

(With inputs from agencies.)