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Trump administration cannot implement 'sweeping' funding freeze, US court rules

The court upheld an injunction against a $3 trillion freeze on federal aid from a January 2025 memo, citing failure to consider recipients' reliance interests, officials said.

  • On Monday, the 1st U.S. Circuit Court of Appeals largely upheld Rhode Island-based U.S. District Judge John McConnell's March 2025 injunction blocking a freeze on trillions in aid and his order directing FEMA to comply.
  • The January 2025 memo from the Office of Management and Budget instructed agencies to pause spending while reviewing grants for alignment with executive orders, then withdrew it after lawsuits.
  • The three-judge panel in Boston sided with Democratic attorneys general from 22 states and the District of Columbia, and Chief U.S. Circuit Judge David Barron said OMB froze funds without considering recipients' reliance interests.
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The Daily Wire broke the news in Nashville, United States on Monday, March 16, 2026.
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