The case, brought by attorneys general in 22 states and the District of Columbia, represents a pivotal test for the administration as it pursues a dramatic review of government spending priorities.

The states told U.S. District Court Chief Judge John McConnell Jr., that the Trump Administration’s threat to freeze trillions of dollars of grants and loans budgeted to fund everything from homelessness to health care. In some cases, even a delay of hours or days, the lawyers said, would cause “irreparable harm” to communities.

A DOJ attorney argued in court that the plaintiffs' claims were moot since the memo that ordered the federal funding freeze has been rescinded.