A U.S. judge has extended a block on the Trump administration’s plan to freeze federal loans and grants, ruling that the policy may have violated Congress’ authority over government spending. The decision follows a similar order issued last week, keeping the funding freeze on hold.

A federal judge in Washington, D.C. ruled on Monday that the Trump administration’s attempt to halt federal funding could be unconstitutional and cause severe disruptions to government-supported programs.

Judge Loren AliKhan issued a temporary restraining order to prevent the administration from enforcing the funding freeze, citing concerns over its potentially catastrophic impact on organizations reliant on federal aid.

The Office of Management and Budget (OMB) initially introduced the freeze to ensure compliance with Trump’s executive orders on immigration, climate, and diversity. However, the order affected up to $3 trillion in financial assistance, prompting lawsuits from advocacy groups and Democratic state attorneys general.

Despite OMB’s withdrawal of the funding freeze memo last week, AliKhan ruled that the lawsuit must continue, as funding issues remain unresolved. She warned that the administration could reissue the policy at any time.

The ruling comes as the Justice Department defends the policy, arguing that Trump retains the authority to direct federal spending priorities. The case remains under review as the court considers a longer-term injunction against the freeze.

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