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Court blocks Trump's bid to freeze federal funds after multistate challenge

LEGAL NEWSLINE

Monday, March 10, 2025

Court blocks Trump's bid to freeze federal funds after multistate challenge

State AG
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Attorney General Kris Mayes | Official website

Attorney General Mayes, along with a coalition of 22 other attorneys general, secured a preliminary injunction against the Trump administration's policy that aimed to freeze funding for federal agency grants and financial assistance programs. The ruling was issued by Judge John J. McConnell of the U.S. District Court for the District of Rhode Island.

“This was an illegal and reckless attempt to withhold critical funding that states rely on to serve their communities,” said Attorney General Mayes. “This ruling is a victory for Arizonans and millions of Americans who depend on these essential federal funds. I won’t stand by while the Trump administration puts itself above Congress and withholds resources that families, public safety, and healthcare providers depend on.”

The contested policy involved actions such as a memorandum from the Office of Management and Budget dated January 27, which sought to freeze trillions in federal funds allocated to states and entities like nonprofit organizations. This move caused significant disruption for many Americans dependent on state programs funded federally.

The legal action against this policy began when Attorney General Mayes and her coalition filed a lawsuit on January 28, followed by securing a temporary restraining order (TRO) on January 31 to block the policy's implementation temporarily. Subsequent motions were filed to enforce compliance with this TRO.

On February 8, the court ordered immediate compliance from the administration regarding the TRO. Later in February, another motion sought to prevent freezing funds from FEMA grants intended for states.

Today's court decision halts further implementation of this funding freeze policy. The court determined there was a high likelihood that claims against the administration's actions would succeed legally.

In addition to stopping the freeze, today's order requires evidence from the administration about unfreezing FEMA funds by March 14 and mandates notifying all agencies about this court order.

The lawsuit is led by attorneys general from California, Illinois, Massachusetts, New Jersey, New York, and Rhode Island. Attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon Vermont Washington Wisconsin and D.C., also joined.

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