Staff told to stop blocking funds from Trump’s EOs
TL/DR –
A federal judge in Rhode Island issued a temporary restraining order against a memorandum issued by the Office of Management and Budget that effectively froze all federal grants, loans, and non-individualized assistance programs. As a result, federal employees received a notice that President Trump’s funding freeze is no longer operative and they cannot take any action to halt or block the spending. The notice went on to state that all federal agencies, not just the ones named in the lawsuit, should comply with the order “out of an abundance of caution”.
Federal Funding Freeze Lifted as per Federal Judge’s Order
President Trump’s freeze on significant federal funding segments has been lifted, allowing the federal workforce to resume spending. This decision follows a federal judge in Rhode Island issuing a temporary restraining order on the controversial Office of Management and Budget (OMB) memorandum, which appeared to freeze all federal grants, loans, and non-individualized assistance programs.
Restraining Order Implications
According to the order, agency personnel are no longer allowed to “pause, freeze, impede, block, cancel, or terminate any awards or obligations” due to OMB’s memo or Trump’s executive orders. The Trump administration had already rescinded the memo last week, and the White House insisted that the orders more narrowly focused on freezing foreign aid, infrastructure, and climate spending remain in effect.
Agency Notifications and Employee Responses
On Monday, agencies notified employees that the prohibition extended to all awards or obligations, and Trump’s orders could not be cited for any pause. Regardless of the order’s temporary nature, it is currently in effect and must be complied with. National Science Foundation (NSF) personnel were instructed to resume payments to grant awardees in response to the court’s order, and employees were directed not to delay or stop payment for active grants due to Trump’s orders.
Questions Around Presidential Authority
The memo raised questions regarding the president’s authority to pause congressionally appropriated funding for policy reasons, which is generally prohibited by the 1974 Impoundment Control Act. As a result, impacted groups and states quickly took legal action, leading to the temporary injunction. Judge John McConnell of the U.S. District Court for Rhode Island stated that the injunction was necessary as the states were likely to succeed in their case.
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