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Court blocks Trump Administration's plan to withhold federal funding

LEGAL NEWSLINE

Wednesday, March 12, 2025

Court blocks Trump Administration's plan to withhold federal funding

State AG
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Attorney General Dana Nessel | Official website

Michigan Attorney General Dana Nessel, along with a coalition of 22 other attorneys general, has successfully obtained a preliminary injunction against the Trump Administration. The court order blocks the administration's policy that sought to withhold funding for federal agency grants, loans, and other financial assistance programs. This decision was made by Judge John J. McConnell of the U.S. District Court for the District of Rhode Island.

Attorney General Nessel expressed her satisfaction with the ruling: “I am grateful that my colleagues and I were able to secure this victory to preserve essential programs for Michiganders while stopping President Trump’s illegal attempt to strip funding for vital government services.” She emphasized her commitment to ensuring compliance with the injunction and maintaining access to critical resources.

The court's decision came after concluding that there was a high likelihood of success on claims challenging the legality of the administration's actions. The judge remarked on the broad nature of these efforts: "One cannot set one’s house on fire and then complain that the firefighters smashed all the windows and put a hole in the roof trying to put it out."

Additionally, today's order mandates that evidence be provided by March 14 regarding compliance related to withholding FEMA funds, alongside notifying all agencies about this court order.

The contested policy involved various actions including a memorandum from January 27 issued by the Office of Management and Budget (OMB), which aimed at withholding trillions in federal funds from states and entities like nonprofit organizations and community health centers. This led to widespread disruption among Americans dependent on state-funded programs.

The legal challenge began when Attorney General Nessel and her counterparts filed suit against this policy on January 28. Following an initial temporary restraining order granted on January 31, further motions were filed leading up to today's injunction aimed at preserving necessary federal funding.

Attorneys general from Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina Oregon Rhode Island Vermont Washington Wisconsin joined Attorney General Nessel in this lawsuit.

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