The plan to freeze loans and grants caused widespread panic among local governments, schools and nonprofit organizations
Administration officials said the decision to halt loans and grants was necessary to ensure that spending complies with Trump’s recent blitz of executive orders A US judge has temporarily paused part of the Donald Trump’s sweeping directive to pause federal loans, grants and other financial assistance, granting a win to advocacy groups who said the policy would be devastating.
At a hearing in Washington, DC, District Judge Loren AliKhan ordered the Trump administration not to block “open awards,” or funds that were already slated to be disbursed, until at least February 3.It does not block the Trump administration from freezing funding to new programs, or require it to restart funding that has already ended.
The Democratic senator for Virginia, Mark Warner reacted to the judge’s decision on X, posting: “This lawless, chaotic order is halted for now, but some of the damage is already done, with countless federal websites down. We’re going to fight to ensure this doesn’t ever go into effect.”
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