On Tuesday, February 25, U.S. District Judge Loren AliKhan extended the block on the Trump administration’s attempt to freeze federal grants and loans through a preliminary injunction. The ruling follows previous temporary orders that halted the administration’s directive to pause federal financial assistance under OMB memorandum M-25-13.
Judge AliKhan emphasized that the administration’s actions could cause “economic catastrophe” for nonprofits and small businesses that depend on federal aid. The preliminary injunction reinforces earlier court decisions from Washington, D.C., and Rhode Island, preventing the administration from reinstating the funding freeze under a different name.
Plaintiffs represented by Democracy Forward argued that the freeze would be devastating to their members and violates First Amendment rights. While some organizations have experienced funding delays even after the memo’s initial rescission, recent court actions have helped unfreeze funds.
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Sacramento Steps Forward will continue monitoring developments and sharing updates with our partners.