Second Judge Extends Block Preventing Trump's Federal Funding Freeze

What Happened?

A second federal judge has extended a block preventing the Trump administration's attempt to freeze grants and other congressionally approved programs from taking effect.

U.S. District Court Judge John McConnell in Rhode Island granted the preliminary injunction Thursday in the lawsuit filed by nearly two dozen Democratic states.

Judge McConnell's decision mirrors that of U.S. District Court Judge Loren AliKhan, who indefinitely blocked the order after a lawsuit filed by four nonprofit groups.

The groups claimed the actions imposed by the Office of Management and Budget were illegal.

Aid to nonprofits, universities, and even small business loan seekers could have been affected, totaling trillions of dollars.

The Trump administration is also indefinitely prohibited by McConnell’s order from implementing a wide-range funding freeze under a different name.

'The Executive’s categorical freeze of appropriated and obligated funds fundamentally undermines the distinct constitutional roles of each branch of our government,' McConnell wrote.

Funding access can still be limited by agencies under applicable laws and regulations on a case-by-case basis.

The White House Office of Management and Budget previously rescinded its order in a two-sentence notice amid widespread confusion.

White House aides had reportedly blamed media members for creating confusion after officials were flooded with calls that questioned its state-level impacts.

Why it Matters

The Trump administration claimed the actions were to provide time to review agency programs and determine the best uses of funding based on the president’s priorities.

'In Fiscal Year 2024, more than $3 trillion of the nearly $10 trillion the government spent went to federal financial assistance for grants and loans,' the White House stated in a memo.

Rhode Island Attorney General Peter Neronha said President Trump has 'attempted to subvert the rule of law in favor of illegal executive power' through his executive orders.

Some examples of frozen funds were to assist with rooftop solar power, grants to reduce greenhouse gas emissions, and the installation of electric heat pump water heaters for low-income neighborhoods.

But the freeze efforts are part of a broader focus by Trump and adviser Elon Musk to restructure the federal workforce.

The Department of Government Efficiency (DOGE) has stated as of March 5, it's saving the federal government $105 billion with a targeted goal of cutting $1 trillion this year.

How it Affects You

There's debate within Trump's team that reportedly argues Congress can authorize a president to spend money but can't require him to do so.

Many of these actions have sparked legal challenges that question the constitutionality of these mass job cuts and funding freezes.

While courts have ordered the Trump administration to restore funding, they have also sought to maneuver around these orders.

If these matters carry on through appeals, it could be a while until many state governments and nonprofit agencies are afloat.