Appeals Court Rejects Trump’s Attempt To Stop Federal Funding Freeze Order
NEW YORK – Following the initial court victory for New York Attorney General Letitia James and a coalition of 22 attorneys general—who successfully halted implementation of a Trump administration policy that would have blocked many federal agency grants, loans and other financial assistance programs—a new court ruling handed the president his second setback.
A federal appeals court on Tues., Feb. 11, rejected the Trump administration’s bid to pause a lower court’s order that temporarily halted a massive freeze in federal funding. CNN first reported that a judge in Rhode Island blocked the funding freeze Mon., Feb. 10, and ordered the government to “immediately restore frozen funding.”
In its ruling on Tues., Feb. 11, a three-judge panel of the 1st U.S. Circuit Court of Appeals wrote that the “defendants do not cite any authority in support of their administrative stay request or identify any harm related to a specific funding action or actions that they will face without their requested administrative stay.”
The court said the parties have until Thurs., Feb. 13, to file any further memoranda in support of their positions on the motion for a stay pending appeal.
On Friday, Jan. 31, Judge John J. McConnell of the U.S. District Court for the District of Rhode Island granted a temporary restraining order blocking the administration’s funding freeze after Attorney General James and the coalition filed a lawsuit to stop the policy.
In a separate court proceeding, U.S. District Judge Loren L. AliKhan in Washington, who had ordered a short-term pause minutes before the Trump administration’s plan was set to go into effect last week, said Monday she’s inclined to grant a longer temporary order in the case brought by a coalition of not-for-profits, according to published reports.
The Trump administration argues a brief pause in funding to align federal spending with the president’s agenda is within the law, and the court lacks constitutional authority to block it. The Associated Press reported that President Donald Trump’s plan to halt federal grants and loans originally targeted a wide range of funding totaling potentially trillions of dollars. While the memo outlining it has since been rescinded, the Republican administration has said some kind of funding freeze is still planned as part of his blitz of executive orders.
“The power of the purse belongs to Congress—not the President of the United States,” said Attorney General James. “Now, New Yorkers can rest assured that federal funds for critical services—meals for our seniors, health care, community public safety, disaster relief, and so much more—are currently not at risk. I will continue to fight in court to defend the essential programs and services New Yorkers need.”
The TRO won by the attorney general coalition prohibits federal agencies from taking any action that would “pause, freeze, block, cancel or terminate” the provision of federal funding, unless otherwise permitted by existing statute or the terms of the grant. In a notice sent to federal agencies and filed with the court this morning, the Department of Justice (DOJ) indicated its intent to comply with the court order and affirmed that the TRO blocking the illegal freeze applied to all federal funding awards or obligations, including those made to recipients such as hospitals, non-profits, or other organizations. The TRO applied to both current and future grants of federal assistance, according to the Attorney General’s office.
Judge Blocks White House Plan To Cut Research Grant Funding
BOSTON—A federal judge in Massachusetts issued a temporary order on Mon., Feb. 10, blocking the White House from cutting billions of dollars in federal grants for scientific research.
U.S. District Judge Angel Kelley issued an order putting the cuts on hold pending a hearing Feb. 21. The move came after 22 state attorneys general, including from New York and New Jersey, filed a lawsuit challenging the Trump administration plan.
The lawsuit seeks to stop the National Institutes of Health from implementing an across-the-board cap on the amount of “indirect” federal research funding that can go toward facilities and administrative costs.
The cap, announced on Fri., Feb. 7, would lead to millions of dollars in lost funding at local universities and research labs. It would threaten jobs in the life sciences sector and the future of research on a wide range of diseases, according to academics who spoke with a New York City-based news organization and advocacy groups like the Greater New York Hospital Association and the Association of American Medical Colleges.
The NIH funding on the chopping block covers a range of costs at research institutions, including maintenance and administrative staff, energy and utility bills and expenses related to ensuring labs meet safety and security standards.
Reprint courtesy The Gothamist.
Published: February 13, 2025.