A federal judge on Friday seemed likely to extend his earlier block on the Trump administration's freeze on federal grants and other financial assistance, suggesting the broad initiative was beyond the powers of federal agencies.

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.

The USCCB sued the Trump administration earlier this week over what the bishops said was an unlawful suspension of funding for refugee resettlement and aid programs.

The Justice Department argued that a lawsuit against the administration is moot because the White House has rescinded a memo calling for a funding freeze.

A federal judge said the Trump administration failed to comply with his order to resume federal payments to foreign assistance programs administered by the US Agency for International Development, but he declined to hold the government in contempt as requested by groups that sued.