In a last-minute decision, U.S. District Judge Loren AliKhan temporarily blocked former President Donald Trump’s federal funding freeze just before it was set to take effect on Tuesday. The ruling prevents the administration from pausing grants, loans, and financial aid worth trillions of dollars.
The White House’s freeze order had caused widespread confusion, as officials struggled to specify which programs would be affected. The Trump administration defended the move, stating it aimed to prevent taxpayer funds from supporting ‘woke’ initiatives and to align spending with executive orders dismantling DEI policies.
The freeze threatened funding for key programs, including education, healthcare, housing aid, disaster relief, and infrastructure projects. While the administration claimed that Medicare and Social Security would remain untouched, uncertainty remained over potential impacts on Medicaid, SNAP benefits, and local law enforcement funding.
The judge’s decision marks a significant legal setback for Trump’s efforts to reshape federal spending. The ruling is expected to trigger further court battles, raising questions about the administration’s authority to withhold funds.
With billions of dollars at stake, the ruling adds new uncertainty to Washington’s ongoing budget disputes, setting the stage for further legal and political clashes.