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U.S. District Judge Loren AliKhan has extended a pause on the Trump administration's plan to freeze federal loans and grants, a decision made during a federal court hearing in Washington, D.C. AliKhan described the potential impact of a funding freeze as "catastrophic" for organizations that serve the public interest, as reported by Reuters on February 4, 2025.
The administration's freeze had sparked confusion following a memo from the White House budget office, which directed federal agencies to halt funding in compliance with Trump’s executive orders addressing immigration, climate change, and other issues. Initially, AliKhan issued a short pause last week, which was set to expire unless a temporary restraining order was granted.
Currently, the Trump administration’s policy is held under two national temporary restraining orders due to lawsuits from a coalition of Democratic attorneys general from 22 states and the District of Columbia. Despite the White House’s attempt to withdraw the problematic memo, advocacy groups indicated that many federal grant recipients continued to face difficulties in accessing necessary funding.