US Judge Blocks Suspension of Federal Assistance 

United States: A U.S. federal judge prolonged a stoppage against an administrative policy that would restrict federal financial aid programs because it affects Congress’s established constitutional power to regulate budget expenditures. The administration policy faced a stoppage according to Judge Loren Ali Khan from the U.S. District Court in Washington because his decision blocked the Office of Management and Budget (OMB) from implementing measures to control $3 trillion in federal aid programs, as reported by Reuters. 

Judge Warns of ‘Catastrophic’ Consequences 

Judge Ali Khan ruled that the OMB’s funding freeze would have a “potentially catastrophic” impact on organizations that rely on federal grants to operate public services. The case, brought forward by multiple advocacy groups, resulted in two restraining orders against the policy—one issued by Ali Khan and another from a federal judge in Rhode Island following legal action from 22 Democratic state attorneys general and the District of Columbia. 

OMB Withdraws Memo but Legal Concerns Remain 

The OMB initially justified the funding pause as a budget control measure tied to executive orders on immigration, climate change, and diversity. However, after facing legal challenges, the agency withdrew the memo on Wednesday. The administration argued that since the policy had been rescinded, the lawsuit should be dismissed. 

US judge extends pause on Trump's plan to freeze federal grants, loans https://t.co/LzHfQUg3eC @realDonaldTrump Doesn't this judge know, Donnie, that we have only one branch of government, the Executive? Who does this judge think she is? You should ask Elon to fire her.

— Robert Brown (@berrebber67) February 4, 2025

Judge: Case Must Continue to Prevent Future Freezes 

Ali Khan rejected the administration’s argument, stating that the lawsuit must proceed because OMB could reinstate the funding freeze at any time. “Furthering the president’s wishes cannot be a blank check for OMB to do as it pleases,” she wrote. She also highlighted the unprecedented scale of the policy, which impacted trillions in federal aid “practically overnight.” 

Congress’ Spending Authority at Risk, Judge Says 

The court found that the funding freeze was “capricious” and may have violated Congress’s constitutional authority over government expenditures. “It did not indicate when that freeze would end (if it was to end at all),” Ali Khan wrote, adding that the policy attempted to bypass the legislative branch’s control over federal spending. 

Advocacy Groups Applaud the Decision 

Diane Yentel, director of the National Council of Nonprofits, praised the judge’s decision, calling the funding freeze “irresponsible.” Despite the memo’s withdrawal, advocacy group attorneys argue that some federal grant recipients are still struggling to access funds. 

Kevin Friedl of Democracy Forward, representing advocacy organizations, told the court that the policy remains active in certain areas, despite legal challenges. Meanwhile, Justice Department attorney Daniel Schwei defended the administration’s stance, arguing that the president has the authority to direct federal agencies, as reported by Reuters. 

What’s Next? 

The existing injunction remains in place as Judge Ali Khan considers issuing a broader ruling to block the policy permanently. As the legal battle continues, organizations dependent on federal funding await clarity on the future of their financial support.