Shapiro: Trump Admin Unfroze Billions in Grants, Loans

TL/DR –

In a federal court in Rhode Island, Trump administration lawyers have argued that it was legal for the government to freeze funding and asked a judge to reject a request for a preliminary injunction made by almost two dozen Democratic states. The lawyers stated that the freeze was a “pause” intended to consider the best use of federal funds, and argued that the case was moot as the Office of Management and Budget had rescinded its memo freezing federal grants and loans in late January. The lawsuit states that aid was being withheld from programs related to energy efficiency, gas wells, abandoned mine cleanup, municipal water and sewer systems, and industry greenhouse gas emission reduction, and included five federal agencies as defendants.

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Federal Court Case Over Trump Administration’s Grant Freeze

Trump administration lawyers defended the legality of their freezing of federal funds in a Rhode Island court. They urged the court to dismiss the plea for a preliminary injunction submitted by nearly two dozen Democratic states. The attorneys depicted the funds freeze as a ‘pause’ to deliberate optimal usage of federal resources.

They argued that the legal dispute was no longer valid, citing that the Office of Management and Budget had repealed its late January memo freezing federal grants and loans.

Impact of the Grant Freeze

The bulk of the suspended grants, as identified by Shapiro’s administration, was approved by Congress in laws endorsed by former President Joe Biden. These include his signature 2022 climate law, the Inflation Reduction Act, and his 2021 infrastructure law.

The lawsuit claimed that aid was being withheld from programs aimed at enhancing energy efficiency, sealing abandoned gas wells, cleaning up forsaken mine lands, bettering municipal water and sewage infrastructure, and compensating industry for reducing greenhouse gas emissions.

Federal Agencies Named as Defendants

Five federal agencies were implicated in the lawsuit: the White House Office of Management and Budget, the Environmental Protection Agency, and the Departments of Interior and Transportation. The only comment came from the Department of Energy, stating adherence to court orders but not clarifying if they had released the accused withheld funding.

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