Judge Temporarily Blocks Trump Administration’s Federal Funding Freeze

On January 28, 2025, U.S. District Judge Loren AliKhan issued a temporary block against the Trump ad[...]

On January 28, 2025, U.S. District Judge Loren AliKhan issued a temporary block against the Trump administration’s attempt to halt federal grants, loans, and other forms of financial aid. This decision came in response to a January 27, 2025, memo from the Office of Management and Budget (OMB), which ordered a pause in federal funding for activities related to the obligation or disbursement of federal financial assistance, and other agency actions potentially affected by President Trump’s executive orders. The pause was scheduled to begin on January 28, 2025, at 5:00 p.m.
A senior administration official clarified that the order was not intended to signify a complete funding freeze, but rather a review of grants, loans, and programs to ensure they align with the administration’s priorities. The OMB’s fact sheet specified that the funding pause was limited to programs, projects, and activities affected by the President’s Executive Orders, such as ending DEI, the green new deal, and funding NGOs that undermine national interests.

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President Trump has signed 38 executive orders so far in his second term. In reaction to the OMB’s memo, the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and Sage filed a lawsuit in the U.S. District Court, District of Columbia, on January 28th. They sought a temporary stay, contending that the memo lacked a clear legal basis for its actions and neglected the reliance interests of grant recipients. The complaint also argued that the memo targeted grant recipients based on their First Amendment rights without considering their eligibility for federal funds. Judge AliKhan granted the temporary stay, which remains in effect until February 3rd, when another hearing is scheduled.

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Following Judge AliKhan’s order, attorneys general from 22 states and the District of Columbia filed a separate lawsuit in the U.S. District Court for the District of Rhode Island, challenging the funding freeze. They requested an emergency temporary restraining order, arguing that the memo violated the Administrative Procedure Act and was unconstitutional. The attorneys general claimed that the memo would prevent states from providing essential benefits, paying public employees, meeting obligations, and conducting government business. Chief U.S. District Judge John McConnell is set to hear the request for an emergency temporary restraining order.

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The Trump administration is gearing up to defend its decision to freeze federal funding against another legal challenge. This comes in the wake of recent developments where a federal judge has temporarily halted the freeze, causing confusion and frustration to spread among affected parties.

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According to Reuters on January 29, 2025, the administration is prepared to face this legal battle. Meanwhile, NPR reported on January 28, 2025, that a judge has paused Trump’s federal funding freeze. This decision has led to a surge in legal actions, with Democracy Docket also reporting the temporary halt on the same day.

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The legal challenges are being documented under specific case numbers. The National Council of Nonprofits et al v. Office of Management and Budget et al is one such case, with the case number 1:2025cv00239. Additionally, the State of New York et al v. Trump et al is another significant case with the case number 1:2025cv00039.

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In the State of New York et al v. Trump et al case, there has been a request for an Emergency Temporary Restraining Order. This legal maneuver is part of the ongoing struggle against the federal funding freeze.

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Photo Credit: Tada Images / *

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