Judge orders end to federal funding freeze

Published 1:50 pm Friday, March 7, 2025

A federal judge in Rhode Island has issued a preliminary injunction barring federal agencies including the USDA from withholding funds from states.

U.S. District Judge John McConnell Jr. ruled March 6 that President Trump’s executive orders and instructions from the Office of Management and Budget caused agencies to freeze funding approved by Congress.

The freeze undermined the constitutional roles of Congress and the executive branch, according to McConnell. “Here, the Executive put itself above Congress,” wrote McConnell, an Obama appointee.

Oregon, Washington, California and 20 other states filed the suit after being cut off from federal funds in January.

“The court’s ruling today amplifies what we have been saying: The president does not have unilateral power to simply disregard Congress’s decisions or dismantle essential parts of our government,” Oregon Attorney General Dan Rayfield said in a statement.

The states claimed the budget office ordered agencies to follow Trump executive orders cutting off support for foreign aid; transgender medical care; diversity, equity and inclusion training; and the “green new deal.”

The Justice Department argued agencies paused distributing funds to find savings and to align spending with Trump’s priorities.

Agencies such as the USDA and Department of Energy acted quickly to pause distributing funds from the Inflation Reduction Act and the Bipartisan Infrastructure Law, according to McConnell.

He rejected the claim that agencies acted independently. In any event, Congress didn’t authorize a spending freeze, he ruled.

“Our Founders, after enduring an eight-year war against a monarch’s cruel reign from an ocean away, understood too well the importance of a more balanced approach to governance,” McConnell wrote.

The budget office rescinded a Jan. 27 memo directing agencies to freeze funding. The memo was taken back to make the states’ lawsuit moot and that it was reasonable to expect the freeze to resume once the suit was dismissed, McConnell ruled.

McConnell earlier had issued a temporary restraining order barring the Trump administration from withholding funds. States claimed that some funds were still being withheld.

The freeze threatened to withhold $14 billion in federal funds from Washington, according to court records.

“This is an important victory,” Washington Attorney General Nick Brown said in a statement. “The judge made clear this was a ham-handed, arbitrary, capricious and fact-free attempt to circumvent the U.S. Constitution.”

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