Appeals court turns down Trump administration on reinstating OMB funding freeze

by Jennifer Shutt, Wisconsin Examiner
March 27, 2025

WASHINGTON — A federal appeals court on Wednesday denied a request from the Trump administration to overturn a lower court’s preliminary injunction, which has so far blocked the White House budget office from implementing a freeze on trillions in grants and loans.

The 48-page opinion from the 1st Circuit Court of Appeals’ three-judge panel said the Department of Justice failed to show that the federal government would “be irreparably injured absent a stay,” or that a stay of the lower court’s ruling pending appeal would serve the “public interest.”

The ruling came from Chief Judge David Barron, Judge Lara Montecalvo and Judge Julie Rikelman. President Barack Obama nominated Barron, while President Joe Biden appointed Montecalvo and Rikelman.

The case began in late January when the Office of Management and Budget issued a two-page memo that led to widespread confusion about the proposed freeze on grants and loans from numerous federal departments and agencies.

The announcement quickly led to two lawsuits, National Council of Nonprofits v. Office of Management and Budget and State of New York v. Trump.

This latter case, filed by Democratic attorneys general from 22 states and the District of Columbia, is the one that worked its way to the 1st Circuit Court of Appeals.

The attorneys general who brought that case represent Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New York, North Carolina, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Washington and Wisconsin.

The Department of Justice’s appeal in the attorneys general case followed Chief Judge John J. McConnell Jr. of the U.S. District Court in Rhode Island issuing a preliminary injunction in early March.

There is also a preliminary injunction in the other case, issued by District Judge Loren L. AliKhan of the U.S. District Court of the District of Columbia in late February. 

Last updated 11:58 a.m., Mar. 27, 2025

Wisconsin Examiner is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Wisconsin Examiner maintains editorial independence. Contact Editor Ruth Conniff for questions: info@wisconsinexaminer.com.

Jennifer Shutt covers the nation’s capital as a senior reporter for States Newsroom. Her coverage areas include congressional policy, politics and legal challenges with a focus on health care, unemployment, housing and aid to families.