US states tell judge Trump not fully following order blocking funding freeze

investing.com 06/02/2025 - 17:13 PM

Judge Ready to Enforce Funding Order

By Nate Raymond (NSE:RYMD)

(Reuters) – A federal judge, John McConnell, is prepared to enforce an order preventing the Trump administration from freezing federal funding after Democratic-led states reported funding delays.

During a virtual court hearing in Providence, Rhode Island, McConnell acknowledged the concerns of state agencies unable to access funds following his January 31 temporary restraining order, requested by attorneys general from 22 states and Washington, D.C.

Despite the White House’s Office of Management and Budget (OMB) rescinding its funding freeze directive, McConnell asserted that evidence showed the policy persisted.

A lawyer from New York Attorney General Letitia James’ office highlighted ongoing difficulties for state agencies accessing federal funds, claiming that certain funds are believed to be excluded from the restraining order.

McConnell expressed willingness to act if concerns were formally presented, with a preliminary hearing scheduled for February 21.

The White House has not commented, while the U.S. Justice Department acknowledged some progress in funding disbursement.

In a letter to EPA Administrator Lee Zeldin, four Democratic lawmakers criticized the apparent funding freeze.





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