Trump Loses Federal Spending Freeze Court Battle

Trump’s attempt to halt a decision mandating that his administration continue receiving government cash was denied by a US appeals court.

In his first appellate court loss since taking office again, US President Donald Trump was dealt a blow on Tuesday when a federal appeals court refused to halt a decision mandating that his administration continue to provide government cash.

The Justice Department’s attempt to have an order granted by US District Judge John McConnell in Rhode Island suspended was refused by the Boston-based 1st US Circuit Court of Appeals. On Monday, the court declared that the Trump administration had disregarded his prior ruling on January 31 by continuing to deny billions of dollars in government assistance.

The Justice Department said that Trump had the right to order federal agencies to follow his policy preferences and that McConnell’s decision amounted to “intolerable judicial overreach.” 

The three-judge appeal court, however, issued a brief order in response, saying it was certain McConnell would allay the administration’s worries and make clear whether or not his decision limited Trump’s legitimate executive power.

US Circuit Judges Julie Rikelman, Lara Montecalvo, and David Barron—all appointed by Democratic presidents—were on the panel. The court let the Justice Department to present more reasons by Thursday, but it did not completely prevent the government from challenging McConnell’s ruling.

Press secretary Karoline Leavitt quickly condemned the decision, referring to the injunctions as “a continuation of the weaponization of justice against President Trump.”

Trump himself claimed on social media that his administration’s attempts to reduce government waste were being “slowed down, or stopped” by “certain activists and highly political judges.” The billionaire Elon Musk, who is his buddy, joined the complaint on social media, stating that “Democracy in America is being destroyed by judicial coup” after demanding the removal of a New York judge who denied his Department of Government Efficiency access to Treasury Department systems.

These comments have raised questions about whether the Trump administration would follow judicial decisions. Under Trump’s leadership, the American Bar Association issued a warning on Monday about “wide-scale affronts to the rule of law itself.”

Following the announcement of a trillion-dollar spending freeze by the White House’s Office of Management and Budget (OMB), Democratic attorneys general from 22 states and the District of Columbia filed the complaint before McConnell. McConnell determined that a temporary restraining order was still required despite the OMB’s subsequent withdrawal of the document, noting evidence that the administration’s funding freeze was still in place.

Accusing the administration of continuing to withhold billions of dollars in infrastructure and environmental monies linked to the Infrastructure Improvement and Jobs Act and the Inflation Reduction Act, the Democratic attorneys general have asked McConnell to execute his order.

A key player in the case, Rhode Island Attorney General Peter Neronha, praised the appeal court’s ruling, saying it guaranteed that McConnell’s “order remains in full force, and we expect the administration to comply.”

Trump’s attempts to shrink the federal government, slash spending, and enforce immigration restrictions have been effectively thwarted by Democratic-led states and civil rights organizations in a number of cases, including this one. The government is facing more court opposition to its policy goals as a result of the ongoing legal challenges.