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.

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 Trump administration has violated a court order by refusing to reverse a freeze of billions in government funds, a judge ruled Monday. The ruling was the latest challenge to sweeping White House plans to cut costs and remake the US government.

Companies that get federal grants or loans usually sign a legally binding agreement and depend on getting reimbursed. The new administration has upended that expectation.

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.

After hearing arguments Friday, Judge John McConnell Jr. said he will rule within a week on whether to further require the Trump administration to keep federal funding flowing.

A group of five labor unions had argued that President Trump's effort to shrink the size of the federal workforce were illegal.