US EditionTrump Administration Cannot Implement 'Sweeping' Funding Freeze, Us Court Rules
The 1st U.S. Circuit Court upheld a block on a $3 trillion freeze on federal aid ordered by OMB, citing failure to consider recipients' reliance interests, court documents show.
- On Monday, the 1st U.S. Circuit Court of Appeals largely upheld Rhode Island-based U.S. District Judge John McConnell's March 2025 injunction blocking a freeze on trillions in aid and his order directing FEMA to comply.
- The January 2025 memo from the Office of Management and Budget instructed agencies to pause spending while reviewing grants for alignment with executive orders, then withdrew it after lawsuits.
- The three-judge panel in Boston sided with Democratic attorneys general from 22 states and the District of Columbia, and Chief U.S. Circuit Judge David Barron said OMB froze funds without considering recipients' reliance interests.
- The appeals court narrowed the remedy by overturning part of McConnell's injunction, citing U.S. Supreme Court rules that money claims must be pursued in a different court, while Rob Bonta called the ruling 'deeply harmful, reckless, and wholly unreasoned'.
- Up to $3 trillion in federal funding was implicated, and the White House did not respond to a request for comment while state attorneys general argued the policy persisted.
15 Articles
15 Articles
The Epoch Times
Zero HedgeFederal Government Cannot Implement Sweeping Funding Freeze: Appeals Court
A federal appeals court has upheld a lower court decision blocking the Trump administration from freezing trillions of dollars in funding to states. A U.S. Court of Appeals for the First Circuit panel of judges said in the March 16 ruling that the White House Office of Management and Budget (OMB) arbitrarily and capriciously directed agencies in early 2025 to pause funding. The OMB “directed the Agency Defendants to freeze such funds without con…
Times of India
The Economic TimesUS court blocks 'sweeping' funding freeze by Trump administration
A federal appeals court has largely upheld a ruling that blocked a sweeping freeze on trillions of dollars in government financial assistance. The White House budget office had directed federal agencies to implement a categorical freeze on funding. The court sided with 23 states and the District of Columbia. The freeze was instituted early last year.
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