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By Jesus Mesa and Gabe Whisnant
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A federal judge ruled on Monday that President Donald Trump's administration had not fully complied with his order to unfreeze federal spending, directing the White House to release all remaining funds.
U.S. District Court Judge John McConnell found evidence that some federal grants and loans are still not going out to the recipients and ordered that the cash be released.
Why It Matters
Judge McConnell blocked the Trump administration's plans for a broad freeze on federal funding in late January.
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Last month, the U.S. Office of Management and Budget (OMB) issued a memo directing federal agencies to suspend grant disbursements while the administration reviewed its spending. The directive applied to previous executive orders covering domestic infrastructure, energy projects, diversity programs, and foreign aid.
The administration defended the pause, arguing it was necessary to align federal spending with the president's agenda.
However, on January 28, District Judge Loren L. AliKhan blocked the funding freeze moments before it was set to be implemented. The OMB walked back its original memo the following day.
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What To Know
Although the memo was withdrawn, McConnell called the reversal "in name only" after White House press secretary Karoline Leavitt stated that it applied only to the memo—not the broader funding freeze.
"The directive's effect remains," McConnell wrote, suggesting the rescission was issued merely to avoid court challenges.
The judge also ruled that his temporary restraining order prevents the administration from implementing billions of dollars in cuts to the National Institutes of Health (NIH) announced Friday.
"These pauses in funding violate the plain text of the temporary restraining order," he wrote. "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."
Additionally, 22 states filed a joint lawsuit Monday against the administration, seeking to halt funding cuts to medical research grants.
The states argue that the cuts would halt critical research into treatments and cures for diseases, including cancer, infectious diseases, and addiction. They also warn that access to modern gene editing and vaccines, such as flu vaccines, could be severely impacted.
What People Are Saying
White House press secretary Karoline Leavitt told Newsweek: "The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments."
Senate Minority Leader Chuck Schumer said: "They say this is only temporary, but no one should believe that. Donald Trump must direct his Administration to reverse course immediately and the taxpayers' money should be distributed to the people. Congress approved these investments and they are not optional; they are the law."
What Happens Next
Following McConnell's ruling, the Trump administration may release the remaining funds to avoid further legal complications, ensuring that grants and loans reach recipients as intended. Alternatively, it could appeal the decision, potentially delaying disbursement and extending the legal battle.
Update 2/10/25, 2:17 p.m. ET: This article was updated with additional information.
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