Washington — A U.S. District Judge in Rhode Island has prohibited the Trump administration from halting federal assistance, thereby extending the stay he implemented several weeks prior in a lawsuit filed by 23 states along with the District of Columbia.
On Thursday, Judge John McConnell issued a preliminary injunction that blocks government agencies from discontinuing federal funds allocated to the states via grants, contracts, or other forms of financial assistance based on a memorandum from the Office of Management and Budget issued in the early days of President Trump’s administration.
“The executive’s blanket freeze on appropriated and obligated funds fundamentally undermines the distinct constitutional responsibilities of each branch of our government,” wrote McConnell, who was nominated by former President Barack Obama. “The interactions among the three co-equal branches of government form an intricate and delicate balance, crucial to our constitutional governance. In this case, the executive has placed itself above Congress.”
The judge remarked that the OMB directive to freeze federal funding across the board was issued “without regard to Congress’s authority over spending,” and concluded that the Trump administration could not provide any statutory or constitutional basis for implementing a government-wide funding freeze.
“The court is not restricting the executive’s discretion or micromanaging the administration of federal funds,” McConnell clarifies. “Instead, consistent with the Constitution, statutes, and case law, the court asserts that the executive’s discretion to impose its own policy preferences on appropriated funds can only be exercised if authorized by the appropriations statutes approved by Congress.”
He indicated that the freeze has affected various programs, including Head Start and other childcare initiatives, along with public safety and law enforcement agencies dependent on federal funding.
McConnell had previously issued a temporary order at the end of January, directing the OMB to maintain the flow of federal assistance. His rulings, combined with a February finding that the Trump administration failed to comply with the earlier directive, have made him a target for criticism from Trump supporters. He is among several federal judges who have challenged the Trump administration early in various cases and have faced threats of impeachment from congressional Republicans.
The lawsuit presented to McConnell was initiated by the 23 states and the District of Columbia in response to a memo from the OMB issued in late January that instructed federal agencies to temporarily suspend grants, loans, and other federal assistance programs affected by President Trump’s executive orders.
This memo targeted approximately $3 trillion in federal assistance programs.
Shortly after the memo was released, OMB retracted it amidst widespread confusion regarding which funds were at risk. However, White House press secretary Karoline Leavitt clarified that only the memo was rescinded, while the funding freeze remained in effect.
The states contested the OMB’s funding freeze at the end of January, arguing that the directive was in violation of federal law and the separation of powers.
In his ruling, McConnell referred to the OMB’s suspension of federal assistance as “indiscriminate and unpredictable,” and deemed it “disingenuous” to imply that the challenged freezes were based on independent agency choices rather than the OMB directive.
“Overall, the OMB directive constituted a command, not a mere suggestion, instructing agency defendants to implement a sweeping, indefinite funding freeze in line with the president’s priorities,” the judge noted.
He also highlighted the absence of evidence showing that Mr. Trump adhered to federal law regarding the proper procedures for withholding or rescinding funds appropriated by Congress, specifically referencing the Impoundment Control Act. This law mandates that the president send a special message to Congress outlining any request to rescind or withhold funds, which, according to McConnell, Mr. Trump did not do.
McConnell stated that the Trump administration “abruptly froze” billions in federal funding for an indefinite duration.
“It is hard to find any rational justification for this decision — let alone careful consideration of its practical consequences — when such funding pauses jeopardize the states’ capability to provide essential services, including but not limited to public safety, healthcare, education, childcare, and transportation infrastructure,” he remarked.
Similar legal challenges are ongoing in federal district courts across the Eastern United States. A judge in Washington, D.C., has also prohibited the Trump administration from pausing federal aid.
The OMB funding freeze is part of a broader set of actions initiated since Mr. Trump took office, aimed at reducing the size of the federal government and its overall expenditure. He established the White House’s Department of Government Efficiency, or DOGE, to lead this initiative. Mr. Trump claims that DOGE is headed by Elon Musk, although the White House has stated that Amy Gleason, who has previously worked for DOGE’s predecessor, serves as the acting administrator.
