Another Federal Judge Temporarily Blocks Trump's Funding Freeze

A federal judge in Rhode Island on Friday delivered another blow to U.S. President Donald Trump's effort to dramatically overhaul the government, temporarily blocking the Republican's funding freeze that sparked chaos and confusion this week.

U.S. District Judge John J. McConnell Jr. granted a temporary restraining order in response to a lawsuit filed by the attorneys general of the District of Columbia and 22 states. His move came after Washington, D.C.-based District Judge Loren AliKhan issued an administrative stay that blocked Trump's funding freeze until a Monday hearing, in a case launched by nonprofits.

After AliKhan's Tuesday decision, the Trump administration rescinded the relevant memo from Matthew Vaeth, acting director of the Office of Management and Budget (OMB). However, White House Press Secretary Karoline Leavitt said on social media Wednseday: "This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo."

"Why? To end any confusion created by the court's injunction," Leavitt wrote, stressing the president's executive orders "on federal funding remain in full force and effect, and will be rigorously implemented."

Citing Leavitt's post in a 13-page order, McConnell explained that the administration tried to claim "that this matter is moot because it rescinded the OMB directive. But the evidence shows that the alleged rescission of the OMB directive was in name only and may have been issued simply to defeat the jurisdiction of the courts. The substantive effect of the directive carries on."

The temporary restraining order is in effect until further action from McConnell, an appointee of former Democratic President Barack Obama. Although the Trump administration can move forward with its review of federal funds, it cannot "pause, freeze, impede, block, cancel, or terminate" funding to the states or D.C. The judge also prohibited "reissuing, adopting, implementing, or otherwise giving effect to the OMB directive under any other name or title or through any other defendants."

"McConnell's order was expected, as he had signaled following a hearing Wednesday that he was inclined to issue the temporary pause of the Trump administration's directive," CBS Newsnoted Friday.

Still, the Democrats behind the legal challenge celebrated their win. New York Attorney General Letitia James said in a statement that "this administration's reckless plan to block federal funding has already caused chaos, confusion, and conflict throughout our country. In the short time since this policy was announced, families have been cut off from childcare services, essential Medicaid funds were disrupted, and critical law enforcement efforts were put in jeopardy."

"I led a coalition of attorneys general in suing to stop this cruel policy, and today we won a court order to stop it," she continued.
"The president cannot unilaterally halt congressional spending commitments. I will continue to fight against these illegal cuts and protect essential services that New Yorkers and millions of Americans across the country depend on."

Rhode Island Attorney General Peter Neronha said that "I am grateful for Judge McConnell's careful consideration of this matter and for seeing the irreparable harm that this directive would cause, and frankly has already caused, Americans across the country."

"As we allege in our complaint, the executive branch does not have the authority to intercept crucially important federal funding that the Congress has already allocated to the states, and on which Americans rely," he emphasized. "This directive targets public safety, healthcare, veterans' services, childcare, disaster relief, and countless other cornerstones of American life."

"Make no mistake: This federal funding pause was implemented to inspire fear and chaos, and it was successful in that respect," he added. "These tactics are intended to wear us down, but with each legal victory we reaffirm that these significant and unlawful disruptions won't be tolerated, and will certainly be met with swift and immediate action now and in the future."

As The New York Timesreported:

Judge McConnell's Friday order does not block the Trump administration from continuing its review, only from defunding those programs that fail its tests in the states that sued—New York, California, Illinois, Rhode Island, New Jersey, Massachusetts, Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Mexico, Oregon, Vermont, Washington and Wisconsin, along with the District of Columbia.

In that sense, it may create a divide between Democratic states that will continue to have funds flowing and Republican states that will still face uncertainty.

The judge's decision came as Trump and billionaire Elon Musk—the richest person on Earth and chair of the president's Department of Government Efficiency (DOGE)—attack the federal government in various ways, including by trying to purge the federal workforce.

As The Washington Post reported Friday that the U.S. Treasury Department's highest-ranking career official, David Lebryk, is leaving his post after clashing with Musk allies over access to payment systems that the agency uses to distribute over $6 trillion, Reuters revealed the DOGE leader's said have "locked career civil servants out of computer systems that contain the personal data of millions of federal employees."