1st Circuit Court Upholds Block on Trump’s Grant Freeze during Appeal Process
March 31, 2025, 3:51 pm CDT
An image representing federal funds and administrative actions. (Image from Shutterstock)
The 1st U.S. Circuit Court of Appeals has declined to lift a block on President Donald Trump’s freeze on federal grants distributed to states, allowing a lower court’s ruling to stand during the appeals process. This decision came after a March 26 ruling siding with a coalition of Democratic attorneys general from 22 states, alongside the District of Columbia and the governor of Kentucky.
Chief U.S. District Judge John J. McConnell Jr. of Rhode Island had previously issued a preliminary injunction on March 6, which mandated that President Trump resume the flow of appropriated federal funds to the states. The judge argued that the freeze likely violated the Administrative Procedure Act (APA), labeling it as arbitrary and capricious, as well as contradictory to existing law. The Impoundment Control Act, which restricts delays in fund expenditures unless for purposes of efficient fund allocation, was highlighted in McConnell’s findings.
In declining to grant the government’s request for a stay, the appeals court determined that the administration had not demonstrated sufficient justification for such judicial intervention. The ongoing case is titled New York v. Trump.
Further information can be found in coverage by Law360 and the Maine Morning Star.
