Judge Halts Trump Administration's Funding Freeze Amid Legal Battle

A U.S. judge prolonged the suspension of the Trump administration's freezing of federal loans and grants after advocacy organizations legally challenged the move. The judge emphasized that a funding halt would gravely impact entities serving public interests. Two temporary restraining orders are now hindering the administration's policy nationwide.

A U.S. judge has extended the pause on the Trump administration's plan to halt federal financial assistance, following legal opposition from advocacy groups. During a Washington, D.C., hearing, U.S. District Judge Loren AliKhan warned that freezing funds could severely affect organizations committed to the public good.

The temporary reprieve, initially ordered last week, followed directives from the White House budget office. These directives aimed to align funding with Trump's executive orders on various issues, leading to widespread confusion. The pause was set to end Monday unless AliKhan, appointed by former President Joe Biden, issued another restraining order.

This action makes the Trump administration's policy subject to two national restraining orders as a Rhode Island federal judge delivered a similar ruling. While the Office of Management and Budget withdrew its contentious memo, advocacy groups noted ongoing access issues for federal grant recipients, prompting continued legal proceedings.

(With inputs from agencies.)