Court Grants Injunction Blocking Trump Administration’s Freeze on Federal Funds

New Jersey Attorney General Matthew Platkin and a coalition of 22 states successfully halted the Trump administration’s freeze on federal grants, loans, and financial assistance programs, securing a court order to restore essential funding.

TRENTON, NJ – A federal judge has blocked the Trump administration’s attempt to freeze trillions of dollars in federal funds, ruling in favor of New Jersey Attorney General Matthew J. Platkin and a coalition of 22 other attorneys general who sued to prevent the funding stoppage. The ruling, issued by Judge John J. McConnell of the U.S. District Court for the District of Rhode Island, grants a preliminary injunction, preventing the administration from moving forward with its funding freeze policy.

The Trump administration’s policy, announced through multiple actions, including a January 27 memorandum from the Office of Management and Budget (OMB), withheld crucial federal funding for states and various entities. The move caused widespread uncertainty and disruption for millions of Americans who rely on state-run programs funded through federal grants.

“From the beginning, we have made clear that President Trump’s federal funding freeze was blatantly illegal – and now a federal judge has agreed with us and granted a preliminary injunction,” said Attorney General Platkin. “This funding freeze was not only unlawful, but also cruel and wrong – yanking away Medicaid funding, disaster relief funding and even targeting drug-trafficking enforcement efforts. I am proud that our office was able to help put a stop to this extremely harmful action by the Trump Administration, and we will continue to fight for all 9.5 million of our residents.”

Attorney General Platkin and the coalition filed a lawsuit on January 28, challenging the legality of the funding freeze. The court initially granted a temporary restraining order (TRO) on January 31, preventing the administration from implementing the freeze.

Subsequent legal actions escalated:

• February 7 – The coalition filed motions for enforcement and a preliminary injunction to permanently stop the freeze.
• February 8 – The court ordered the administration to comply with the TRO, preventing any further withholding of federal funds.
• February 28 – A second enforcement motion was filed to address the administration’s continued freezing of hundreds of millions of dollars in FEMA grants.

Court Ruling Blocks Funding Freeze

On March 7, the court granted the preliminary injunction, halting the funding freeze nationwide. The judge ruled that:

• The coalition demonstrated a high likelihood of success in proving the freeze was unlawful.
• The administration must immediately comply with court orders to restore FEMA funds.
• Federal agencies must be notified of the ruling and take action to unfreeze withheld funds.

The administration has been ordered to provide compliance evidence on FEMA funds by March 14.

The funding freeze posed a serious threat to state programs that rely on federal grants, including disaster relief, infrastructure projects, education funding, healthcare programs, and public safety initiatives. By securing the injunction, the attorneys general have ensured that states will continue receiving necessary funds without disruption.

The lawsuit was led by New Jersey, California, Illinois, Massachusetts, New York, and Rhode Island. The case was also supported by attorneys general from 17 other states and the District of Columbia, including:

• Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont, Washington, and Wisconsin.

What’s Next?

The ruling represents a significant legal setback for the Trump administration’s funding freeze policy. As the case continues, the coalition will monitor compliance and ensure federal agencies restore access to funds for crucial state programs. The administration may attempt to appeal the ruling, but for now, states have secured ongoing access to essential federal support.

Attorney General Platkin and his counterparts have reaffirmed their commitment to defending federal funding that supports communities, businesses, and critical public services nationwide.