The latest skirmish in the battle over federal funding to states took place in federal court in Providence Friday.
Lawyers representing a coalition of 22 states — including Rhode Island, Massachusetts, Connecticut, Vermont and Maine — asked a federal judge to prevent the Trump Administration from pulling funds because they don’t fit with the president’s agenda.
The states told U.S. District Court Chief Judge John McConnell Jr., that the Trump Administration’s threat to freeze trillions of dollars of grants and loans budgeted to fund everything from homelessness to health care.
In some cases, even a delay of hours or days, the lawyers said, would cause “irreparable harm” to communities.
The Trump Administration argued it has already rescinded its initial order to federal agencies, making the case moot. The White House now vows it will hold back money only if the president has the legal authority to do so.
Lawyers overseen by Rhode Island Attorney General Peter Neronha told the court they don’t trust the administration not to exceed its authority.
“Our concern is once the court’s order goes away, the president can go right back to what he did in the first place,” Neronha told reporters outside the courthouse in Providence. “And so what we’re seeking is a freeze, if you will, on their freeze, meaning ‘You cannot take any additional action to pause these funds.’”
Judge McConnell said he hopes to rule within a week on whether the case can proceed. For now, McConnell said, an earlier temporary order barring a pullback on funds remains in place.
The funding freeze
The dispute stems from a sweeping two-page memorandum by Matthew J. Vaeth, then-acting director of the White House Office of Management and Budget (OMB). In that Jan. 27 memo, addressed to the heads of all executive departments and agencies, the OMB ordered a temporary spending freeze starting at 5 P.M. the following day.
The purpose, Vaeth wrote, was to root out any spending not in line with President Trump’s priorities as outlined in his executive orders — “including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
Vaeth wrote: “The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”
A federal judge in Washington blocked implementation of the freeze moments before it took effect. Meanwhile, 22 states filed suit in the U.S. District Court in Providence.
At that point, the OMB issued a new memorandum rescinding the previous one. But while the administration walked back the rationale Vaeth had given for the spending freeze, executive agencies still did not release the funds in some cases.
Judge McConnell issued a temporary restraining order Jan. 31, compelling the administration to unfreeze the funds indefinitely while the court considers the issue.
The Trump administration apparently still has not released all of the funds, so McConnell followed up with an enforcement order compelling them to comply.
The Trump administration appealed that order, but the 1st Circuit Court of Appeals declined to intervene, setting the stage for Friday’s hearing.
The Public’s Radio’s Jeremy Bernfeld contributed to this story, which has been updated with additional information.
