Judge says Trump administration is not in full compliance with order on spending

A federal judge in Rhode Island has found that the Trump administration has continued to improperly freeze some federal funds, despite a temporary restraining order issued late last month blocking the administration’s efforts to pause payments for grants and other federal programs.

In a five-page order issued Monday, U.S. District Judge John McConnell Jr. wrote that the administration, in several instances, has continued “to improperly freeze federal funds and refused to resume disbursement of appropriated federal funds.”

Monday’s ruling came in response to a lawsuit brought by attorneys general in 22 states and the District of Columbia. In his decision, McConnell ordered the administration to “immediately restore frozen funding” and “immediately end any federal funding pause” that affects the challengers. 

The Trump administration argued in a court filing leading up to the decision that it had acted “in good faith to interpret the scope of the Court’s [temporary restraining order] and expeditiously resume any funding that is subject to it.”

The order is one of two lawsuits filed against the administration in response to the attempted funding pause, originally detailed in a memo by the Office of Management and Budget in late January. The memo was rescinded days after it was released, but the White House has said a review of federal funding is still necessary to make sure that spending aligns with the president’s agenda.

In his order, McConnell said the freeze was “likely unconstitutional and has caused and continues to cause irreparable harm to a vast portion of this country.”

The judge pointed to information from the plaintiffs in the case that some funding has continued to experience delays and remains inaccessible after the initial court order. In an exhibit accompanying the judge’s order, the states listed affected funding from multiple agencies, including the Environmental Protection Agency, the Department of Energy and the Department of Health and Human Services.

The order also specifically directs the administration to restore any withheld funding that was appropriated through the Inflation Reduction Act and the Infrastructure Investment and Jobs Act — both passed during the Biden administration.

In its filing Sunday, the Trump administration argued that the temporary restraining order did not “Unambiguously Extend” to that spending because it was paused under a separate OMB memo.

Among the attorneys general challenging the administration’s spending freeze is New York’s Letitia James, who on Monday celebrated the decision as a victory for “millions of Americans in need.”

“The law is clear: the President does not have the power to cut whatever spending he wants,” James wrote in a statement posted to social media. “I will continue to make sure this administration follows the law.”

In addition to the order in Rhode Island, a federal judge in Washington, D.C., has also issued a temporary restraining order against the administration — blocking the memo from taking effect and barring the administration from carrying it out “under a different name.”