A federal judge on Tuesday placed a preliminary injunction on the Trump administration's planned freeze on federal funding, halting the process while a lawsuit against the freeze proceeds.
The order to freeze federal funds, as originally released by the White House's Office of Management and Budget, would impact a huge swath of federal funds already allocated for things like the Inflation Reduction Act and Bipartisan Infrastructure Bill projects, as well as foreign aid commitments and funding for some non-profit organizations and services.
The ruling expands a temporary restraining order that went into effect earlier in February. A coalition of nonprofits sued over the order, arguing that the freeze would do "irreparable harm" to their organizations.
"The Trump administration’s OMB grant freeze memo plunged people and communities across the country into chaos and uncertainty as they waited to see if critical programs would continue – from childcare, to eldercare, to food services, to health programs, to community initiatives,” said Skye Perryman, President and CEO of Democracy Forward. “This preliminary injunction will allow our clients to continue to provide services to people across this country. We are pleased that the court issued this ruling, halting the Trump administration's lawless attempt to harm everyday Americans in service of a political goal."
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U.S. District Judge Loren AliKhan ordered OMB to continue disbursing federal funds and instruct all the agencies affected by its memo to do the same.
The court instructed the parties to the case to meet and discuss next steps no later than Friday, Feb. 28.
