A federal appeals court overturned a lower court order that paused all federal funding, forcing the Trump administration to release billions of dollars in grants and loans that had been frozen. The 1st U.S. Circuit Court of Appeals ruled that the lower court's order was 'intolerable judicial overreach,' but said it expected the lower court judge to clarify his order quickly. The decision comes after near two dozen Democratic states sued the administration for halting federal funding, causing chaos across the country.
Wednesday, February 12, 2025 12:00AMadministration to release billions of dollars in federal grants and loans that remain frozen even after a court blocked a sweeping pause on federal funding.
President Donald Trump speaks with reporters in the Oval Office at the White House, Tuesday, Feb. 11, 2025, in Washington.That ruling came from U.S. District Court Judge John McConnell in Rhode Island, the first judge to find that the administration had disobeyed a court order. Money for things like early childhood education, pollution reduction and HIV prevention research has remained tied up even after his Jan. 31 order halting the spending freeze plan, the states said.
The Justice Department said McConnell's order prevents the executive branch from exercising its lawful authority, including over discretionary spending or fraud. The court battle is unfolding as a string of court losses is increasingly frustrating top administration officials by slowing President Donald Trump's wide-ranging agenda .
FEDERAL FUNDING COURT BATTLE TRUMP ADMINISTRATION GRANT FREEZE CONGRESS
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