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The Justice Department argued that a lawsuit against the administration is moot because the White House has rescinded a memo calling for a funding freeze.

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.