Federal Judges Block Trump Administration’s Sweeping Funding Freeze

Two federal judges have issued restraining orders halting the Trump administration’s attempt to freeze federal grants and loans, citing potential constitutional violations and widespread harm.

The Trump administration issued a memo on January 27 directing federal agencies to pause nearly all federal grant and loan disbursements, citing alignment with new executive orders targeting DEI initiatives, 'woke gender ideology,' and environmental programs.
Judges in Rhode Island and Washington, D.C., ruled against the freeze, with Judge Loren AliKhan extending a temporary restraining order on Monday, citing irreparable harm to nonprofits and public service organizations.
Plaintiffs, including nonprofits and 22 states, argued the freeze violated the Impoundment Control Act of 1974 and caused significant disruption to health care, education, and disaster relief programs.
The administration’s withdrawal of the memo did not resolve the issue, as court filings and a White House statement suggested the funding freeze remained in effect, raising concerns about compliance with judicial orders.
The legal battle highlights broader debates over executive power, with the Trump administration defending its actions as necessary to align spending with presidential priorities.