Trump’s Funding Freeze Sparks Legal Clash as Judge Signals Readiness to Act

A federal judge has warned that he is prepared to enforce an order blocking the Trump administration from withholding billions in federal funds, as Democratic-led states argue that agencies are still facing funding delays despite a court ruling.

During a virtual hearing, U.S. District Judge John McConnell expressed concern that state agencies were struggling to access financial assistance nearly a week after his temporary restraining order was issued. The order, issued on January 31, was intended to overturn a funding freeze announced by the White House’s Office of Management and Budget (OMB). While the OMB later rescinded its directive, the judge suggested the reversal was more symbolic than substantive, stating it appeared to be done “in name only” to sidestep legal challenges.

State officials contend that essential funding tied to infrastructure and climate initiatives remains inaccessible. A legal representative for New York’s attorney general argued that agencies were still being told that funds were frozen, despite the court’s ruling. McConnell reaffirmed that his order was explicit and indicated he would take action if necessary.

“If you need me to intervene, bring it before me, and we will handle it swiftly,” he said, scheduling a potential hearing for February 21 to consider a broader injunction.

Meanwhile, Democratic lawmakers have pressed for answers, accusing the Environmental Protection Agency of continuing to withhold funds. The White House and EPA have yet to respond publicly, while the Justice Department has stated that federal agencies are working to disburse “appropriate” funding.

With tensions mounting, the battle over federal financial assistance appears far from over, and the court may soon be called upon to escalate enforcement.

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