A federal appeals court has denied President Donald Trump’s attempt to pause a lower court ruling that blocks his administration from freezing billions in federal spending, setting the stage for a high-stakes legal battle over executive power.
The 1st U.S. Circuit Court of Appeals refused to halt an order from U.S. District Judge John McConnell, who found that the administration had disregarded his earlier ruling by continuing to withhold funds. The Justice Department, arguing that McConnell had overstepped his authority, was rebuffed by the three-judge panel, which expressed confidence that the lower court would address any concerns raised by the administration.
This marks the first appellate loss for Trump since returning to the White House on January 20. However, the court left the door open for the administration to make further legal arguments by the end of the week.
The White House responded with sharp criticism, calling the injunctions “a continuation of the weaponization of justice against President Trump.” The decision comes amid mounting tensions between the administration and the judiciary, with Trump and allies like Elon Musk denouncing what they describe as judicial overreach.
Democratic attorneys general from 22 states and Washington, D.C., filed the lawsuit that led to this ruling, challenging a White House budget freeze that could have affected trillions in spending. Despite the administration rescinding its initial memo on the freeze, the court found evidence that funding restrictions remained in place.
As Trump pushes ahead with efforts to shrink federal spending and streamline government operations, legal challenges from Democratic-led states and advocacy groups continue to mount. With the latest ruling keeping McConnell’s order in effect, all eyes are now on whether the administration will comply—or escalate the fight further.
