Federal Court Blocks Trump's Expenditure Freeze

A federal appeals court has largely upheld a ruling that blocked a far-reaching freeze on government financial assistance initiated by President Donald Trump's administration. This ruling comes after a three-judge panel from the 1st U.S. Circuit Court of Appeals sided with Democratic attorneys general from 22 states and the District of Columbia.

The judges found that the budget office directed federal agencies to freeze obligated federal funds without considering recipients' reliance interests. In upholding the Rhode Island-based U.S. District Judge John McConnell's injunction, the appeals court noted that lawsuits seeking to recover government funds must be pursued in a different, specialist court.

The White House has not commented on this decision. The attorneys general had filed suit following an OMB memo that demanded a temporary halt on federal financial assistance to review alignment with Trump's executive orders. Although OMB later withdrew the memo, the court ruled on the implications of the directive.