A federal judge has temporarily blocked President Donald Trump’s attempt to freeze billions in federal grants, loans, and aid, siding with Democratic state officials who argued the move would disrupt essential government services.
The ruling, issued by U.S. District Judge John McConnell in Rhode Island, came despite the White House’s last-minute attempt to walk back the controversial policy. McConnell called the administration’s withdrawal of the directive “in name only,” suggesting it was a strategic move to sidestep legal challenges.
New York Attorney General Letitia James, one of the leading voices against the freeze, praised the decision, saying it prevents a “chaotic” interruption of critical funding for healthcare, education, and infrastructure.
McConnell’s order not only blocks the current policy but also bars the administration from reintroducing it under a different guise. His ruling follows a similar, though shorter, administrative stay issued by a judge in Washington, D.C.
The White House had argued that the funding pause was necessary to align federal spending with Trump’s executive orders, including those targeting diversity, equity, and inclusion programs. However, state officials countered that the move violated the Constitution by bypassing Congress’s authority over federal spending.
Despite rescinding the directive, the administration continued to insist the freeze was still in place—White House Press Secretary Karoline Leavitt even declared in a social media post that “this is NOT a rescission.”
As legal battles unfold, McConnell made clear that the president does not have “limitless power” to unilaterally withhold congressionally approved funds. His ruling underscores the constitutional limits on executive authority, setting up yet another high-stakes showdown over Trump’s efforts to reshape the federal government’s role.
