US Judge Issues Temporary Restraining Order Preventing Trump from Halting Federal Funding
A federal judge has temporarily halted the Trump administration’s effort to freeze federal grants, loans, and other forms of financial aid, responding to concerns from Democratic state attorneys general. They argued that the Republicans’ policy would endanger essential government-funded services.
The decision, made by US District Judge John McConnell in Providence, Rhode Island, followed appeals from Democratic attorneys general from 22 states and the District of Columbia. This occurred even after the White House announced it was rescinding Monday’s memo from its budget office regarding the policy.
Judge McConnell indicated that evidence suggested the policy was still operational despite the Office of Management and Budget’s “wide-ranging, all-encompassing, and ambiguous” directive being rescinded. He noted this appeared to be merely a move in “name-only” meant to obstruct a legal challenge.
Donald Trump has already taken steps to halt foreign aid, implement hiring freezes, and close diversity programs across multiple agencies.
New York Attorney General Letitia James, who played a key role in the litigation, praised the ruling, asserting it would “block the White House’s chaotic pause on federal funding.”
This order will remain in effect until further notice from Judge McConnell. It follows a shorter administrative stay issued by a judge in Washington, DC, which paused the policy in response to a separate legal challenge filed by several nonprofit organizations. A hearing on the Washington case is scheduled for Monday.
The US Department of Justice, which is defending Trump’s policy in court, declined to provide comments.
Judge McConnell, appointed by former President Barack Obama, stated that Congress had not provided the president with “limitless power to broadly and indefinitely pause all funds directed to specific recipients and purposes.”
He expressed concerns that abruptly pausing potentially trillions of dollars in federal funding would trigger a ripple effect, directly affecting states’ ability to deliver and manage vital services for their residents.
In a post on X, White House Press Secretary Karoline Leavitt remarked, ‘This is NOT a rescission of the federal funding freeze,’ shortly before the hearing regarding the memo’s withdrawal.
Mr. Trump has already issued directives aimed at stopping foreign aid, implementing hiring freezes, shutting down diversity programs across numerous agencies, and reclassifying federal workers to facilitate easier termination and offering financial incentives for millions to resign to reduce the size of government.
The Democratic state attorneys general indicated that Matthew Vaeth’s memo from the OMB’s acting director threatened over $1 trillion in federal grants, which states rely on for funding essential services such as healthcare, education, and transportation.
The memo instructed that funds be withheld while the administration reviewed grants and loans to ensure alignment with Trump’s priorities, which include executive orders terminating diversity, equity, and inclusion programs.
Read more: White House says OMB memo on funding freeze rescinded
The states contended that the White House policy did not consider the damage it would cause to grant recipients and infringed upon the US Constitution by overriding Congress’s authority to determine federal spending.
A law from 1974 known as the Impoundment Control Act established procedures meant to prevent a president from withholding funds approved by Congress.
Amid ongoing litigation, the White House attempted to clarify the funding freeze, asserting it would not affect Social Security or Medicare payments and would only impact programs covered by Trump’s executive orders.
The OMB ultimately withdrew its memo on Wednesday, just before the hearing in the case before Judge McConnell. However, the state attorneys general argued that this action only retracted a “piece of paper” without addressing the underlying policy.
They highlighted a post by White House Press Secretary Karoline Leavitt on X shortly before the hearing on the memo’s withdrawal, stating, “This is NOT a rescission of the federal funding freeze.”
