Funding Freeze Halted

A federal judge temporarily blocked the Trump administration’s order yesterday to pause funding for all federal grants, loans, and other financial assistance just minutes before the directive was scheduled to go into effect. The block lasts until Monday afternoon and sets a hearing for arguments that morning.

Judge Loren L. AliKhan, a President Joe Biden appointment, for the U.S. District Court for the District of Columbia said she would put the matter on a temporary pause as she considers arguments from the U.S. government and the plaintiffs in the case, who had asked for the court to issue a restraining order against the government to stop the funding freeze.

The White House’s order intended to temporarily halt trillions of dollars in aid to initiatives including education, healthcare, child care, disaster relief, housing assistance, and small businesses. The Office of Management and Budget sent a two-page memo and an 836-page spreadsheet to federal agencies Monday night, asking them to provide details about their spending programs.

The move aimed to review funding to ensure financial assistance programs align with President Donald Trump’s policies. Critics argue the order violates the 1974 Impoundment Control Act, which outlines the procedure presidents must follow when they seek to withhold funds—much of which is authorized and required to be disbursed by Congress via the annual appropriations process (see overview).

Separately, Trump is reportedly offering buyouts to federal workers who don’t want to return to the office as long as they resign by Feb. 6.