A federal appeals court has upheld a lower court decision blocking the Trump administration from freezing trillions of dollars in funding to states.
A U.S. Court of Appeals for the First Circuit panel of judges said in the March 16 ruling that the White House Office of Management and Budget (OMB) arbitrarily and capriciously directed agencies in early 2025 to pause funding.
The OMB “directed the Agency Defendants to freeze such funds without considering an obvious aspect of the problem—namely, the reliance interests of the recipients of the obligated federal funds that were to be frozen,” U.S. Circuit Judge David Barron, writing for the unanimous panel, said in a 58-page decision….
Federal Government Cannot Implement Sweeping Funding Freeze: Appeals Court
