Federal Judge Extends Block on Trump Funding Freeze

A federal judge in Washington, D.C. issued a preliminary injunction against the Trump administration's funding freeze on Tuesday, handing another win to a coalition representing nonprofits and small businesses impacted by the policy.

Filed by Democracy Forward on behalf of the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE, this case is one of two challenges to the funding freeze currently before U.S. district judges.

Judge Loren AliKhan, nominated by former President Joe Biden, noted in her Tuesday opinion that she previously issued a temporary restraining order barring the defendants—Office of Management and Budget (OMB) and its far-right director, Russell Vought—from "implementing, giving effect to, or reinstating under a different name" a now-rescinded memo halting federal funding.

"The Trump administration's OMB grant freeze memo plunged people and communities across the country into chaos and uncertainty."

"The court reminds defendants that the injunctive relief currently in place was issued to temporarily stave off imminent, irreparable harm," AliKhan wrote. "Facts have certainly evolved since then... but defendants cannot pretend that the nationwide chaos and paralysis from two weeks ago is some distant memory with no bearing on this case."

"The relief plaintiffs now seek is a more durable version of the relief they sought then, when their members were on the brink of extinction," she continued. "In sum, plaintiffs have marshaled significant evidence indicating that the funding freeze would be economically catastrophic—and in some circumstances, fatal—to their members."

In a statement responding to the order, Democracy Forward president and CEO Skye Perryman said that "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."

"This preliminary injunction will allow our clients to continue to provide services to people across this country," Perryman explained. "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."

Diane Yentel, president and CEO of the National Council of Nonprofits, similarly called the judge's decision "a tremendous relief for thousands of nonprofit organizations throughout the country that are struggling to continue their vital work," which includes "providing wildfire mitigation, disaster relief, services to survivors of domestic violence, support for our nation's veterans, and so much more."

Main Street Alliance executive director Richard Trent said the order is also important to small businesses and the communities they serve. The development also "shows that organizing and targeted legal action are some of the most impactful ways to hold the administration accountable for errant decision-making that touches Main Street," he added.

The preliminary injunction from AliKhan follows a Friday hearing in the other case, before U.S. District Judge John McConnell Jr. in Rhode Island. That challenge was brought by the Democratic attorneys general in 22 states and the District of Columbia. NPR reported that McConnell, who had also issued a temporary restraining order against the funding freeze, said that he would leave it in place, "but that he hoped to have a final ruling on the case in about a week."

McConnell, an appointee of former President Barack Obama, is one of at least three federal judges that congressional Republicans are targeting with impeachment efforts for thwarting Trump's far-right agenda.