A U.S. judge has temporarily halted an order issued by President Donald Trump that sought to block hundreds of billions of dollars in federal grants and loans. The decision came just before the order was set to take effect, according to a BBC report.
Judge Loren Ali Khan has issued the stay until Monday. The decision follows a lawsuit filed by a group of organizations that previously received federal funding.
The lawsuit argues that by temporarily suspending already approved funds, the White House has violated the law. The court’s order came just hours before the president’s directive was to be implemented. However, there has been widespread confusion over which agencies or programs would be affected by Trump’s order.
The acting head of the White House Office of Management and Budget has directed relevant agencies to temporarily suspend all activities related to the distribution of federal financial aid.
The administration stated that this step was taken to allow the incoming administration to review grants and loans.
White House Press Secretary Caroline Leavitt defended the decision, saying that suspending billions of dollars in federal funding was necessary for responsible management of taxpayer dollars.
In her first press briefing with journalists, she explained that the suspension would allow the government to reassess expenditures on gender-related and diversity programs. However, the move has sparked both confusion and outrage.
Nonprofit organizations and research institutions that rely on such grants and loans are now facing the imminent loss of funding. Judge Ali Khan has issued a status quo order on Tuesday, with a hearing scheduled for Monday.
The White House directive is expected to impact several billion dollars in federal programs, including disaster relief and cancer research.
Diane Yentel, President of the National Council of Nonprofits, celebrated the court’s decision on social media platform X, stating, “Our lawsuit was successful—the court has blocked the suspension of federal funding.”
Critics argue that Trump’s order was issued without legal or rational justification and will have nationwide consequences.
A coalition of Democratic states has also filed a separate lawsuit, claiming that Trump’s order is unconstitutional.
White House Deputy Chief of Staff Stephen Miller told reporters that the president’s order would enable the government to exercise “credit control.”
When asked whether the order would affect federal programs, Miller responded that no such programs would be impacted. He was specifically questioned about potential effects on food assistance programs.
On Tuesday, concerns were raised in several states regarding funding for public health insurance programs. Later, the White House clarified that those programs would not be affected and that any issues would be resolved promptly.
Additionally, it was confirmed that social security programs would remain unaffected.
Senate Democratic Leader Chuck Schumer criticized Trump’s decision, warning that it would create chaos.