On January 27, 2025, the Office of Management and Budget (OMB) issued a memo ordering federal agencies to freeze congressionally approved funds. The next day, 22 states and the District of Columbia sued in the U.S. District Court for the District of Rhode Island. They argued the freeze bypassed Congress and disrupted critical services like healthcare, education, and law enforcement. They sought an injunction, citing evidence that states couldn’t access federal reimbursements for programs like Medicaid.
On March 6, 2025, U.S. District Judge John McConnell granted a preliminary injunction, blocking the freeze and ruling it violated separation of powers and caused irreparable harm. He ordered federal agencies to resume payments and denied the administration’s motion to stay the injunction pending appeal. The ruling ensures funding continues while the case proceeds.
N.Y. v. Trump, No. 1:25-cv-00039 (D.R.I. 2025).