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Court blocks Trump administration's plan to freeze federal funds

LEGAL NEWSLINE

Monday, March 10, 2025

Court blocks Trump administration's plan to freeze federal funds

State AG
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Attorney General Josh Kaul | Attorney General Josh Kaul Office

Attorney General Josh Kaul and a coalition of 22 other attorneys general have secured a preliminary injunction against the Trump administration to prevent the implementation of a policy that would freeze federal funding for essential grants, loans, and financial assistance programs. The decision was made by Judge John J. McConnell of the U.S. District Court for the District of Rhode Island.

AG Kaul stated, “With this ruling is in place, the Trump administration will be blocked from moving forward with a reckless, harmful, sweeping freeze of funds obligated to Wisconsin and other states.” He emphasized the importance of courts in upholding constitutional law and called on Congress to assert its authority over spending.

The contested funding freeze policy was introduced through several actions, including a January 27 memorandum from the Office of Management and Budget (OMB). It allegedly withheld trillions of dollars in federal funds for states and organizations like nonprofits and community health centers, causing disruption for many Americans reliant on state programs funded federally.

The lawsuit initiated by Attorney General Kaul and his coalition followed their January 28 legal action against the freeze. By January 31, a temporary restraining order (TRO) had been granted to block the policy's implementation until further court notice. Subsequent motions were filed on February 7 and February 8 for enforcement and a preliminary injunction to stop what they deemed an illegal freeze. On February 28, they sought further enforcement to prevent freezing FEMA grants.

The court has now halted the policy’s implementation following today’s granting of a preliminary injunction. The ruling noted that states demonstrated strong potential success on claims that actions comprising the funding freeze were unlawful. Additionally, it required evidence from the administration regarding unfreezing FEMA funds by March 14 and mandated all agencies be informed about this order.

This legal effort is led by attorneys general from California, Illinois, Massachusetts, New Jersey, New York, and Rhode Island. Also participating are attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont Washington as well as the District of Columbia.

ORGANIZATIONS IN THIS STORY

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