Gov. Kathy Hochul said Tuesday grants and programs that fuel a statewide housing compact to build thousands of new units will not stop as President Donald Trump's administration attempts to halt trillions of dollars in federal grants and loans that help millions of Americans.

A federal judge temporarily blocked a push from Trump to pause federal funding, arguing she wants more time to understand the sweeping impact of the order, which could affect free school lunches, small business loans, Meals on Wheels, Medicaid programs and more.

Earlier Tuesday, Hochul announced the state will give an additional $110 million to more than 270 designated "pro-housing communities" across New York to upgrade infrastructure and finish projects to increase the state's lacking housing supply.

"I know how a community can stop growth if they want to, but also how they can unleash it and liberate it," the governor said during a speech at SUNY Schenectady County Community College. 

Questions remain about how the federal spending directive will impact the state's future housing and overall budget negotiations, but Hochul said the threat won't change the state's housing plans or other affordability initiatives.

"I'm going to continue building more housing," Hochul later told reporters. "I'm not going to walk back on our commitments to have more housing built in our state because I need to have a place people can live so they can stay here and not have to leave our great state."

New York and California led 23 state Attorneys General to file a lawsuit Tuesday to block the Office of Management Budget directive that would freeze up to $3 trillion in federal funding.

The housing funding Hochul announced is part of $123 million allocated in the latest round of the state’s Regional Economic Development Council initiative.

Hochul also wants to create a new loan fund to spur mixed-income rental housing outside New York City and legislation to address landlord issues with fixed lease agreements.

"People, sometimes, have had to leave our state because there's other places that, again, had the ambition to build more housing," she said. "And I want to make sure that no one has to leave a neighborhood, no one has to leave our state ever again."

The potential pause of $3 trillion in federal support is worrying state leaders as they focus on upcoming budget proposals.

As lawmakers forge ahead with budget hearings, state leaders must wait for more details about the funding freeze before taking action. 

Senate Health Committee chair Gustavo Rivera said lawmakers must balance the need to act swiftly while making an informed response.

"There's things that we need to do legislatively and administratively to protect New Yorkers on a day-to-day basis," Rivera said. "And so we definitely have to respond to things that are happening, but we also have to focus on doing the things that we can do in the state to strengthen New York and protect New Yorkers. So it's kind of a tricky back and forth, but it's what we need to do to be able to govern well."

Rivera is concerned the potential funding pause will make state budget talks chaotic, and argues the state must increase taxes on the wealthy to offset uncertainty in Washington.

"We need more revenue to be able to make up at least some of what the federal government is going to take away from us," he said.

Hochul said the state receives about $93 billion from the federal government for various programs and services that could be in jeopardy if the funding freeze is upheld in court.