Federal US judge rejects Trump funding freeze over constitutional violations

A federal US judge on Thursday blocked an attempt by President Donald Trump’s administration to freeze billions of dollars in congressionally approved funding destined for 22 states and the District of Columbia, concluding that the White House’s directive overstepped its constitutional authority by halting money that Congress had already appropriated..

In an extensive opinion, Chief Judge John J. McConnell Jr. of the US District Court for the District of Rhode Island stressed that the US Constitution gives Congress the sole authority to control federal spending. By issuing a blanket pause on agencies’ disbursement of funds to the plaintiff states, he wrote, the executive branch “put itself above Congress” and undermined a foundational principle of US governance.

Judge McConnell concluded that the administration’s approach left vital state services in an “indefinite limbo,” citing extensive evidence from the plaintiff states showing that the freeze threatened health, education, public safety, and infrastructure programs relied on by millions. He described the danger of “abrupt, categorical” interruptions in essential services, including emergency management and disaster relief.

At the heart of the dispute was a memorandum from the Office of Management and Budget (OMB) issued shortly after President Trump took office. The memo instructed federal agencies to “temporarily pause” the disbursement of billions of dollars in grants and other forms of federal funding so officials could ensure that the spending aligned with the new administration’s policies. Among the areas that drew particular scrutiny in the memo and related executive orders were environmental and climate-related projects, including references to “terminating the Green New Deal,” and grants associated with immigration policy.

Throughout his opinion, Judge McConnell reiterated that federal agencies can only act within the scope authorized by law. Emphasizing the principle that “[f]ederal agencies and departments can spend, award, or suspend money based only on the power Congress has given to them,” he concluded that the OMB’s “categorical pause” on dozens of funding streams exceeded those statutory limits.

A coalition of attorneys general, led by officials from states including New York and California, filed suit in late January in the wake of the OMB directive. They alleged that the freeze violated the Administrative Procedure Act by failing to follow proper rulemaking procedures as well as the separation of powers principle enshrined in the US Constitution. They further argued that the Impoundment Control Act of 1974 explicitly prevents the president and federal agencies from withholding funding for policy disagreements with Congress.

New York Attorney General Letitia James, a key figure in the litigation, welcomed the court’s order on Thursday. She stated: “The Trump administration’s illegal funding freeze jeopardized law enforcement funding, essential health care and childcare services, and other critical programs that millions of Americans rely on … The power of the purse belongs to Congress – not the President.”

Thursday’s ruling extends an earlier temporary order directing the federal government to continue processing the funds for the plaintiff states. Judge McConnell’s new decision tightens that directive into a preliminary injunction, ordering agencies to refrain from “pausing, freezing, blocking, canceling, suspending, terminating or otherwise impeding” appropriated funding. The order also compels them to restore access to the funds that had been frozen—a key measure aimed at restoring state agencies’ confidence and budget certainty.