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Court blocks Trump Administration's plan to freeze federal funding

LEGAL NEWSLINE

Monday, March 10, 2025

Court blocks Trump Administration's plan to freeze federal funding

State AG
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Attorney General Letitia James | Official website

New York Attorney General Letitia James, with a coalition of 22 attorneys general, has secured a preliminary injunction against the Trump administration. The court order blocks an alleged illegal policy that would have frozen federal funds for essential grants, loans, and other financial assistance programs. Judge John J. McConnell of the U.S. District Court for the District of Rhode Island granted the injunction following a lawsuit filed by Attorney General James and her colleagues.

Attorney General James 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." She emphasized her commitment to defending essential funding and noted, "Today we secured another court order to block the administration’s funding freeze while our lawsuit progresses."

The contested policy was reportedly issued through various actions including a memorandum from the Office of Management and Budget (OMB) on January 27. It allegedly withheld trillions in federal funds meant for states and entities like nonprofit organizations and community health centers. This action caused immediate issues in New York and other states where Medicaid dollars were inaccessible. In Syracuse, a community health center faced potential closure due to lack of funds.

Following the initial lawsuit filed on January 28, a temporary restraining order was granted on January 31 by the court to halt the freeze's implementation temporarily. Subsequent motions led to further enforcement orders against the administration's actions regarding Federal Emergency Management Agency (FEMA) grants.

The latest court decision requires evidence from the administration by March 14 to confirm compliance with unfreezing FEMA funds. It also mandates that all agencies be informed about this order.

This legal action is led by Attorney General James along with her counterparts from California, Illinois, Massachusetts, New Jersey, Rhode Island, Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont Washington Wisconsin as well as the District of Columbia.

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