Judge Blocks Trump Administration’s Federal Grant Spending Freeze

Federal Court Blocks Trump’s Spending Freeze in Rhode Island

Updated March 06, 2025 at 13:30 PM ET

The Trump administration’s attempt to halt federal grant payments and other government programs has been temporarily blocked again by a federal judge in Rhode Island. This decision marks a significant win for a coalition of Democratic attorneys general from 22 states and the District of Columbia who challenged the move.

U.S. District Judge John McConnell Jr. issued the preliminary injunction, marking the second such ruling against the spending freeze. The judge emphasized the importance of maintaining the constitutional balance of power between the branches of government. “The interaction of the three co-equal branches of government is an intricate, delicate, and sophisticated balance—but it is crucial to our form of constitutional governance,” McConnell Jr. stated. “Here, the Executive put itself above Congress. It imposed a categorical mandate on the spending of congressionally appropriated and obligated funds without regard to Congress’s authority to control spending.”

While this ruling counters the administration’s initiative, it is limited to the states involved in the lawsuit. Rhode Island’s Attorney General Peter Neronha expressed his satisfaction with the outcome, stating, “Right now, the Judicial Branch stands strong,” and emphasizing the importance of constitutional checks on presidential power. New York Attorney General Letitia James also supported the decision, asserting, “Despite what Trump may think, the power of the purse belongs to Congress.”

The Trump administration is expected to appeal the ruling, consistent with President Trump’s previous indications to challenge court decisions that impede his policy goals. The controversy began when the Office of Management and Budget released a memo calling for a pause in federal spending, leading to confusion among recipients of federal aid. Following backlash, the White House rescinded the memo but maintained its commitment to a spending review.

Judge McConnell Jr. had initially issued a temporary restraining order against the spending freeze and noted the administration’s inadequate compliance. Arguments from the Justice Department defending the freeze as a lawful exercise of presidential power were met with skepticism in court. Plaintiffs argued that the freeze was unconstitutional, threatening numerous social programs and projects.

This case is one of several legal challenges faced by the administration, including a separate action in Washington, D.C. where a judge also temporarily blocked the funding freeze. The administration’s broader initiative, supported by adviser Elon Musk, seeks to overhaul the federal workforce and reduce government spending, with measures such as firing federal employees and closing agencies.

Despite these efforts, courts have often ordered the restoration of funding. Recently, in a related case concerning foreign aid, the Supreme Court upheld a decision requiring the government to restore $2 billion in payments.