Trump Administration Holds Back Billions in Funding Despite Court Ruling, States Urge Judge to Enforce Order
A federal judge expressed readiness to enforce his ruling blocking the Trump administration’s freeze on federal funding, as Democratic-led states continue to struggle to access billions in grants, loans, and financial assistance. Despite a January 31 ruling by U.S. District Judge John McConnell in Providence, Rhode Island, the funding remains largely inaccessible, leading to growing concern among state agencies.
The ruling followed a request from Democratic attorneys general from 22 states and the District of Columbia, who argued that immediate action was necessary to stop the funding freeze. While the White House’s Office of Management and Budget (OMB) rescinded its directive to freeze funds, McConnell emphasized that evidence suggested the policy was still effectively in place. He indicated that the OMB’s rescission appeared to be a tactic to undermine the legal challenge.
At a virtual hearing on Thursday, a lawyer representing New York Attorney General Letitia James stated that state agencies are still being told that billions in federal funds remain frozen, including money designated for infrastructure and the Inflation Reduction Act. Despite McConnell’s temporary restraining order (TRO), which clearly directed the release of funds, states continue to face difficulties accessing the financial resources to which they are entitled.
McConnell, appointed by former President Barack Obama, reaffirmed that he believed the order was clear and stood ready to act if the states presented further evidence of continued non-compliance. He set a tentative hearing for February 21 to discuss whether a longer preliminary injunction should be issued.
Meanwhile, in a related case, the U.S. Department of Justice confirmed that some federal agencies are beginning to release funds, but they denied ongoing implementation of the OMB memo's directives. Four Democratic lawmakers, including Senator Jeffrey Merkley, expressed frustration in a letter to the Environmental Protection Agency (EPA) over a continued freeze on funding from the agency, though the EPA has yet to respond.
As the situation unfolds, states are urging the court to take swift action to ensure that federal funds are fully restored without further delay.
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