Judge Issues Temporary Restraining Order Against Trump’s Federal Aid Freeze Plan

January 28, 2025 TruthUSA

The judge issued a short administrative stay concerning parts of the freeze.

A federal judge has temporarily halted part of President Donald Trump’s order suspending federal loans, grants, and other forms of financial assistance on January 28. This action came shortly after advocacy groups and multiple Democratic state attorneys general filed lawsuits against the administration.

During a hearing in Washington federal court on Tuesday afternoon, U.S. District Judge Loren AliKhan granted a “brief administrative stay,” instructing the Trump administration to avoid blocking “open awards,” referring to funds that were meant to be disbursed, until at least February 3.

AliKhan made her ruling shortly after hastily arranging a video conference one hour before the freeze was set to start at 5 p.m. ET.

The judge noted that her ruling will “preserve the status quo” and does not prohibit the Trump administration from halting funds for new initiatives, nor does it mandate the continuation of expired funding.

Another hearing is planned for February 3 at 11 a.m. ET, during which AliKhan will decide on the subsequent steps in the case.

The White House Office of Management and Budget (OMB) released a memorandum on Monday, instructing all federal agencies to suspend grants, loans, and various financial aid while the administration assesses the programs.

The lawsuit was initiated by the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE, a nonprofit organization based in New York for the LGBT community, contending that Trump’s directive would have a catastrophic effect on numerous grant beneficiaries.

Prior to AliKhan issuing a temporary restraining order that the plaintiffs sought against parts of the freeze, a coalition of Democratic state attorneys general, led by New York Attorney General Letitia James, declared their intent to also sue the Trump administration on Tuesday.

This story will be updated.

Reuters contributed to this report.

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