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Court halts Trump administration's plan to freeze essential federal funding

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Saturday, February 1, 2025

Court halts Trump administration's plan to freeze essential federal funding

State AG
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Attorney General Peter Neronha | Ballotpedia

Attorney General Neronha announced that a Rhode Island court has granted a motion to halt the implementation of a new policy from the Trump administration. This policy would have blocked federal agency grants, loans, and other financial assistance programs. The action was taken by Neronha's office in collaboration with 22 other attorneys general.

"I am grateful for Judge McConnell’s careful consideration of this matter and for seeing the irreparable harm that this directive would cause, and frankly has already caused, Americans across the country," said Attorney General Neronha. "As we allege in our complaint, the Executive Branch does not have the authority to intercept crucially important federal funding that Congress has already allocated to the states, and on which Americans rely."

The U.S. District Court for the District of Rhode Island granted a temporary restraining order against implementing this policy. This decision follows an administrative stay by the U.S. District Court for the District of Columbia concerning a lawsuit filed by nonprofit groups receiving federal funds.

The proposed policy from the President’s Office of Management and Budget (OMB) was issued on January 27. It aimed to indefinitely pause most federal assistance, affecting health care, education, law enforcement, disaster relief, infrastructure, among others. In response to this proposal, Attorney General Neronha and his colleagues filed a lawsuit on January 28 seeking to stop its enforcement.

Despite attempts by the administration to rescind this policy, disruptions continue for states and organizations dependent on federal funding. Medicaid funds were frozen in multiple states following OMB's announcement; Head Start programs faced fund cuts leading some childcare centers to close.

The lawsuit is led by attorneys general from Rhode Island, New York, California, Illinois, Massachusetts, and New Jersey with support from Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan Minnesota Nevada New Mexico North Carolina Oregon Vermont Washington Wisconsin along with D.C.'s attorney general joining as well.

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