A federal judge on Tuesday ruled against the Trump administration’s attempt to reinstate a federal spending freeze, blocking the measure from taking effect.
U.S. District Judge Loren AliKhan, an appointee of President Joe Biden, sided with a group of plaintiffs who sued the administration over the decision.
As a result, the Office of Management and Budget (OMB) will be unable to proceed with its planned pause on federal grants, loans, and other financial assistance programs.
Last month, the Trump administration’s OMB issued a directive that temporarily halted agency grants and funding programs to allow for a review of federal spending.
The administration defended the move as necessary to ensure taxpayer dollars were being allocated effectively and in line with the president’s policy priorities.
“The American people elected Donald J. Trump to be President of the United States and gave him a mandate to increase the impact of every federal taxpayer dollar,” the OMB stated. “In Fiscal Year 2024, of the nearly $10 trillion that the Federal Government spent, more than $3 trillion was allocated to federal financial assistance programs, including grants and loans.”
The OMB memorandum outlined the administration’s intent to evaluate the effectiveness of federal assistance