financetom
Economy
financetom
/
Economy
/
US judge says Trump administration violated order lifting spending freeze
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US judge says Trump administration violated order lifting spending freeze
Feb 10, 2025 2:37 PM

(Reuters) - A U.S. judge on Monday said President Donald Trump's administration violated a court order lifting a broad freeze on federal spending and directed the government to immediately release any withheld funds.

U.S. District Judge John McConnell in Providence, Rhode Island, had already blocked the funding freeze with a temporary restraining order on Jan. 31, but a group of Democratic state attorneys general who sued to block the move said last week that the government was still withholding funds.

The ruling appeared to be the first instance of a judge finding the Trump administration had violated a court order pausing a new policy rollout. The Trump administration on Monday said it is appealing.

"The broad categorical and sweeping freeze of federal funds is, as the court found, likely unconstitutional and has caused and continues to cause irreparable harm to a vast portion of this country," McConnell said on Monday. "These pauses in funding violate the plain text of the TRO."

McConnell said all funding must be restored at least until he can hold a hearing on the states' motion for a longer-term order.

On Feb. 6, a lawyer with the office of Democratic New York Attorney General Letitia James told McConnell that state agencies were still having difficulty accessing federal funds, including billions of dollars for infrastructure projects under the Inflation Reduction Act.

The Trump administration had told states it believed the order did not apply to certain environmental and infrastructure spending, and that some payments were delayed for "operational and administrative reasons."

However, McConnell said his order had been "clear and unambiguous" in applying to all funding frozen in response to sweeping executive orders by Trump.

The states originally sued the administration over a memorandum from the White House's Office of Management and Budget announcing a wide-ranging freeze of federal spending. Soon after the lawsuit was filed, OMB rescinded that memo.

The memo was part of a larger Trump administration push to tighten federal spending and reshape the federal bureaucracy, which has sparked a flurry of lawsuits.

In a separate case over Trump's push to dismantle the U.S. Agency for International Development, federal employee unions have accused the administration of violating a court order reinstating USAID workers who were placed on administrative leave.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Dallas Fed June Manufacturing Index Indicates Slower Pace of Contraction
Dallas Fed June Manufacturing Index Indicates Slower Pace of Contraction
Jun 24, 2024
10:42 AM EDT, 06/24/2024 (MT Newswires) -- The Dallas Fed's monthly manufacturing index rose to a reading of minus 15.1 in June from minus 19.4 in May, compared with expectations for a reading of minus 15.0 in a survey compiled by Bloomberg as of 7:55 am ET. The reading indicates a slower pace of contraction, which is in line with...
Fed's Goolsbee still looking for data inflation is cooling - CNBC
Fed's Goolsbee still looking for data inflation is cooling - CNBC
Jun 24, 2024
NEW YORK (Reuters) - Federal Reserve Bank of Chicago President Austan Goolsbee is still looking for inflation to cool further as part of the process that would open the door to a rate cut. Describing himself as closet optimistic that we're going to see improvement on the inflation front, Goolsbee said in a CNBC interview on Monday that he is...
US Dollar Falls Early Monday, Eyes on GDP, Personal Income, Spending Data
US Dollar Falls Early Monday, Eyes on GDP, Personal Income, Spending Data
Jun 24, 2024
07:31 AM EDT, 06/24/2024 (MT Newswires) -- The US dollar fell against its major trading partners early Monday ahead of an unusually busy week of economic data, with a focus on gross domestic product and personal income and spending data later in the week. The week starts light with only manufacturing data from the Dallas Federal Reserve on the schedule...
Big US banks expected to be cautious on shareholder payouts after stress tests
Big US banks expected to be cautious on shareholder payouts after stress tests
Jun 24, 2024
WASHINGTON (Reuters) - Big U.S. lenders are expected to show they have ample capital to weather any renewed turmoil during this week's Federal Reserve health checks, but will be conservative on investor payouts amid economic and regulatory uncertainties, analysts said. The central bank on Wednesday will release the results of its annual bank stress tests which assess how much cash...
Copyright 2023-2025 - www.financetom.com All Rights Reserved