A US judge has temporarily blocked President Donald Trump's sweeping order to pause federal grants and loans.
The White House earlier announced it would pause federal grants and loans while the administration conducted an across-the-board ideological review to uproot progressive initiatives.
The order from US District Judge Loren L AliKhan came minutes before the funding freeze was scheduled to go into effect.
It lasts until Monday afternoon, local time, and applies only to existing programs.
Administration officials said the decision to halt loans and grants — a financial lifeline for local governments, schools and nonprofit organisations around the country — was necessary to ensure that spending complied with Mr Trump's recent blitz of executive orders.
The Republican president wants to increase fossil fuel production, remove protections for transgender people and end diversity, equity and inclusion efforts.
A vaguely worded memo issued by the Office of Management and Budget, combined with incomplete answers from the White House throughout the day, left politicians, public officials and average Americans struggling to figure out what programs would be affected by the pause.
Even temporary interruptions in funding could cause lay-offs or delays in public services.
A spokesperson for the Shawnee Mission School District in Kansas, David Smith, said the order "sort of came out of the blue".
The district is one of the countless ones that receive federal funding.
Now it is trying to figure out what it means "based on zero information" Mr Smith said.
Judge AliKhan, who was appointed by former US president Joe Biden, said in halting the freeze: "It seems like the federal government currently doesn't actually know the full extent of the programs that are going to be subject to the pause."
Jessica Morton, an attorney for the National Council of Nonprofits, which brought the lawsuit suit, said the group had tens of thousands of members around the country that could be affected.
"Our client members have reported being extremely concerned about having to shutter if there's even a brief pause," Ms Morton said.
Justice Department attorney Daniel Schwei said the plaintiffs had not identified anyone specifically who would lose funding right away if the pause went into effect.
Just minutes after Judge AliKhan ruled, Democratic attorneys-general from 22 states and the District of Columbia filed their own lawsuit seeking to block and permanently prevent the administration from cutting off federal funding.
"There is no question this policy is reckless, dangerous, illegal and unconstitutional," New York Attorney-General Letitia James said.
Trump administration says Medicaid not affected by pause
Trump administration officials said programs that provided direct assistance to Americans, such as Medicare, Medicaid, Social Security, student loans and food stamps, would not be affected.
They also defended the funding pause, saying Mr Trump was following through on his promise to turn Washington upside down if elected for a second term.
Organisations such as Meals on Wheels, which receives federal money to deliver food to the elderly, were worried about getting cut off.
"The lack of clarity and uncertainty right now is creating chaos," spokeswoman Jenny Young said.
She added that "seniors may panic not knowing where their next meals will come from".
The National Science Foundation postponed this week's panels for reviewing grant applications.
Republican leaders in Louisiana said they were "seeking clarity" to ensure nothing was "jeopardising [the] financial stability of the state."
Washington senator Patty Murray said Mr Trump's actions would "wreak havoc in red and blue communities everywhere".
"We are talking about our small towns, our cities, our school districts," she said.
Officials asked about programs promoting abortion, gender ideology
The full scope of the administration's review was spelled out in a 51-page spreadsheet sent to federal agencies and viewed by The Associated Press.
Each line was a different government initiative, from pool safety to tribal workforce development, to special education.
Officials were directed to answer a series of yes or no questions for every item on the list including, "Does this program promote gender ideology?" or, "Does this program promote or support in any way abortion?"
Responses are due by February 7.
Trillions of dollars are potentially under review.
Grants that have been awarded but not spent are also supposed to be halted if they might violate one of Mr Trump's executive orders.
"The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve," acting director of the Office of Management and Budget, Matthew Vaeth, said in a memo distributed on Monday.
The funding pause is the latest example of how Mr Trump is harnessing his power over the federal system to advance his conservative goals.
For example, federal employees are being asked to report their colleagues if they try to continue diversity, equity and inclusion initiatives.
