Judge Loren AliKhan sided Tuesday with a coalition of nonprofits that had sued the government over the budget freeze, describing the potential fallout of the Trump administration’s interference as “economically catastrophic” and in some cases “fatal” for the group that brought the case.
The extension is yet another blow to Donald Trump’s efforts to shrink federal spending. The coalition, which consisted of the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE, had asked the court to halt the freeze on the basis that OMB does not have the authority to unilaterally shutter funding to hundreds of agencies, which have already had their spending approved by Congress.
The Trump administration gave federal agencies mere hours to prove that their programs did not promote or support elements that Trump has derided as “woke” ideology, including “environmental justice,” abortion, DEI initiatives, and “woke gender” programs, or provide services to “illegal aliens,” in order to tap back into the cashflow, according to an OMB memo.
AliKhan had previously issued a temporary restraining order on the freeze but ultimately agreed with the nonprofits that the government “may be crossing a constitutional line” in attempting to completely choke Congress’s purse strings.
In her ruling, AliKhan pointed to a “mountain of evidence” brought by the nonprofit coalition that showed “even the threat of a funding freeze was enough to send countless organizations into complete disarray.” Furthermore, she wrote that the Trump administration could not provide a “reasonable explanation for why they needed to freeze all federal financial assistance in less than a day to ‘safeguard valuable taxpayer resources.’”
But while turning off the flow of federal cash streams appeared to be “alarmingly easy” for Trump officials, AliKhan noted that turning them back on has “proven much more difficult.”
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