A federal judge in Rhode Island ruled Monday that the Trump administration violated a court order by failing to lift a freeze on federal funding and ordered the immediate restoration of billions in government spending.
U.S. District Judge John J. McConnell Jr. issued the ruling after a coalition of 22 states argued that the administration had not fully complied with his Jan. 31 order halting the funding freeze. The judge had previously blocked the Office of Management and Budget (OMB) directive, which suspended federal grants and contracts.
“The States have presented evidence that the Defendants have continued to improperly freeze federal funds,” McConnell wrote, emphasizing that his previous order was “clear and unambiguous.”
The ruling is the first since President Trump’s second inauguration accusing his administration of defying a judicial order.
Justice Department lawyers argued that some funding remained under review for appropriateness and claimed the order did not cover all allocations. They maintained the administration was acting to prevent fraud.
However, McConnell rejected that argument, stating, “The broad categorical freeze of federal funds is likely unconstitutional and continues to cause irreparable harm.”
He ordered funding to resume across all affected programs, including the National Institutes of Health and Biden-era Inflation Reduction Act allocations. The temporary restraining order (TRO) remains in effect until a hearing on a preliminary injunction later this month.
The OMB directive, issued Jan. 27, had instructed agencies to halt most grant and contract funding for review. Several federal judges blocked aspects of the pause, leading the OMB to rescind the directive.
Despite this, states argued in court filings that crucial funds remained frozen, putting “jobs, lives, and the social fabric” at risk. The administration has not indicated whether it will appeal the ruling.
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