A federal judge temporarily halted President Trump’s plan to freeze federal aid just minutes before it was set to take effect Tuesday afternoon. U.S. District Judge Loren AliKhan granted a “brief administrative stay” preserving federal disbursements until at least Monday at 5 p.m. EST after nonprofit and public health groups sued.
The freeze, announced Monday in an Office of Management and Budget (OMB) memo, directed agencies to pause all federal financial assistance while the administration reviewed spending. The White House defended the move, insisting it wouldn’t impact Social Security or direct payments.
Justice Department lawyers argued against an injunction, stating no imminent grant disbursements had been identified. However, advocacy groups warned the freeze would cause widespread disruptions.
The lawsuit was filed by organizations including the National Council of Nonprofits and the American Public Health Association. Meanwhile, Democratic attorneys general, led by New York’s Letitia James, plan to challenge the freeze separately.
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