Second Federal Judge Poised to Halt Trump’s Spending Freeze

WASHINGTON — A federal judge is poised to issue a restraining order that could prevent the Trump administration from freezing critical funding for grant and loan programs. This development comes after the Office of Management and Budget (OMB) attempted to rescind a contentious memo hours before the hearing.

Chief Judge John J. McConnell Jr. of the U.S. District Court in Rhode Island expressed his inclination to issue an order but refrained from doing so during the virtual session. He requested input from the Democratic attorneys general who filed the suit regarding the order’s wording and wants to hear further from the Justice Department’s representative before making a decision.

McConnell, appointed by former President Barack Obama, indicated that he believes the Trump administration may continue its funding halt, a concern stemming from a social media comment made by White House press secretary Karoline Leavitt. “That hasn’t changed based on comments by the president’s press secretary,” he stated, highlighting the need for clear legal guidance on the matter.

If McConnell issues a ruling, it would mark the second order obstructing the Trump administration’s proposed spending freeze. Earlier, District Judge Loren L. AliKhan granted a temporary administrative stay, halting the implementation of the funding pause initiated by Trump’s administration. This case is scheduled for a hearing on February 3, involving groups reliant on federal resources.

The original memo from OMB, released recently, caused significant confusion among several organizations, including Meals on Wheels, and prompted bipartisan frustrations among Congress members. The situation escalated when Leavitt declared that rescinding the memo did not equate to ending the federal funding freeze, further complicating the narrative.

Leavitt clarified in a social media post that while the memo was rescinded, the President’s executive orders regarding federal funding would remain effective. She characterized the memo’s withdrawal as a response to the confusion generated by the court’s actions.

The OMB’s decision led to mixed reactions. Maine Republican Sen. Susan Collins, chair of the Senate Appropriations Committee, hailed the memo’s withdrawal as a move toward clarity. Conversely, Senate Appropriations Committee ranking member Patty Murray commended the decision but criticized the administration for causing unnecessary distress in a short period.

In parallel, the White House had previously reassured that the funding freeze would not affect vital programs like Social Security and Medicare. Two lawsuits were filed seeking to hinder the OMB memo’s enforcement, leading to significant legal developments in the matter.

Last updated 3:42 p.m., Jan. 29, 2025