Rhode Island OMB Funding Freeze Challenge

Lawsuit filed by 22 states and the District of Columbia represented by Democratic attorneys general against President Donald Trump, the U.S. Office of Management and Budget (OMB) and 11 additional federal departments or agencies and their leading directors challenging the OMB’s recent directive to halt the disbursement of federal funds. On Jan. 27, 2025, OMB released a directive ordering the head of each executive branch department and agency to temporarily pause the disbursement of any financial assistance programs that could be impacted by Trump’s recent executive orders, “including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.” On Jan. 28, OMB released a second memo clarifying that the funding freeze is not “across-the-board,” and wouldn’t impact certain programs like Medicaid. 

The states claim this freeze on federal funding will affect their ability to “provide certain essential benefits for residents, pay public employees, satisfy obligations, and carry on the important business of government.” They argue the directive violates Article I and several additional clauses of the U.S. Constitution, as well as the Administrative Procedure Act. The states ask the court to vacate the OMB directive and ban the defendants from enforcing the funding freeze pending further orders from the court.

On Jan. 31, the court granted the states’ motion for a temporary restraining order, halting the Trump administration from implementing the funding freeze pending the court’s review of the states’ forthcoming motion for a preliminary injunction. 

On Feb. 10, the court granted the states’ motion to enforce the temporary restraining order after finding the Trump administration had not fully halted the funding freeze in violation of the court’s previous order. The Trump administration appealed that order, as well as the initial temporary restraining order, the same day.

On Feb. 11, 2025, the 1st U.S. Circuit Court of Appeals denied the government’s request for a stay pending appeal.

STATUS: On March 6, 2025, the district court granted the state’s request for a preliminary injunction. The Trump administration’s funding freeze remains blocked.

Last updated: March 6, 2025 9:38 pm EST