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Federal court blocks Trump Administration's federal funding freeze amid ongoing litigation

LEGAL NEWSLINE

Wednesday, March 12, 2025

Federal court blocks Trump Administration's federal funding freeze amid ongoing litigation

State AG
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Attorney General Rob Bonta | Official website

California Attorney General Rob Bonta has secured a preliminary injunction from the U.S. District Court for the District of Rhode Island, halting a federal funding freeze initiated by the Trump Administration. The court's decision prevents the implementation of this freeze while ongoing litigation continues. According to the court, states are likely to succeed in their claims that the Trump Administration violated the Administrative Procedure Act by freezing funds contrary to appropriations statutes and acting arbitrarily.

The court noted that the administration failed to counter the states' concerns about potential harm, which includes impacts on public safety, healthcare, childcare, infrastructure funding, and other essential services. Attorney General Bonta emphasized the significance of this ruling as an "important victory for the rule of law" and reiterated his commitment to securing a permanent block against what he termed a "radical freeze."

Last month, a coalition led by attorneys general from California, New York, Rhode Island, Illinois, and Massachusetts filed a lawsuit against the Trump Administration over its attempt to freeze up to $3 trillion in federal funding. The U.S. District Court for Rhode Island quickly issued a temporary restraining order blocking this freeze.

In California alone, $168 billion in federal funding is at stake—representing 34% of the state's budget—not including funds for public colleges and universities. This includes significant Medicaid funding serving millions of residents. The preliminary injunction was supported by attorneys general from several states including Arizona, Colorado, Connecticut, Delaware, and others.

A copy of the preliminary injunction is available for public access.

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