Written by Ashton Snyder on
 January 30, 2025

Federal judge moves to block Trump White House funding freeze despite OMB memo recall

A federal judge's decisive stance against the Trump administration's federal funding freeze directive sets the stage for an intense legal battle over government spending control.

According to ABC News, District Judge John McConnell Jr. indicated his intention to issue a temporary restraining order against the Trump administration's attempt to halt federal loans and grants, even after the Office of Management and Budget (OMB) withdrew its original directive.

The development comes amid a flurry of legal challenges from 22 state attorneys general who sought to prevent what could amount to trillions of dollars in frozen federal assistance. The contested policy would have affected various sectors, including healthcare, law enforcement, disaster aid, and infrastructure spending.

Judge McConnell's anticipated order stems from concerns about the administration's potential alternative methods to implement similar freezes, particularly following statements from White House Press Secretary Karoline Leavitt.

White House scrambles as funding freeze policy faces judicial scrutiny

The Trump administration's hasty retreat from its original directive became evident when Acting OMB Director Matthew Vaeth issued a brief memo rescinding the previous order.

However, this administrative backtrack did little to allay judicial concerns about the White House's underlying intentions. The Department of Justice found itself in a precarious position during court proceedings, struggling to define the scope of affected programs.

During the hearing, Judge McConnell exhibited little patience for the administration's arguments. When DOJ attorney Daniel Schwei attempted to address the scope of the plaintiffs' requested relief, McConnell delivered this pointed response: "Respectfully, so was the breadth of the OMB directive."

State attorneys general unite against sweeping federal directive

The coalition of state attorneys general moved swiftly to challenge the administration's policy, citing potentially devastating impacts on essential government functions. Their legal filing emphasized the critical nature of federal funding for maintaining basic state operations and services.

White House Press Secretary Leavitt's social media statement further complicated the situation by asserting that the president's executive orders regarding federal funding would remain active despite the OMB memo's withdrawal. This declaration prompted additional scrutiny from Judge McConnell, who cited it as justification for proceeding with the restraining order.

The OMB's initial clarification attempt, which sought to exempt programs like Social Security, Medicare, and SNAP benefits from the freeze, failed to resolve widespread concerns about the policy's implications. The Justice Department's inability to provide clear answers about affected programs during court proceedings only heightened these anxieties.

What comes next in the funding freeze battle

The Trump administration's attempt to implement a sweeping freeze on federal funding has encountered significant legal obstacles, primarily through the opposition of 22 state attorneys general and judicial intervention.

Judge McConnell's forthcoming temporary restraining order represents a major setback for the White House's efforts to control federal spending through executive action.

As the situation continues to develop, the administration faces mounting pressure to clarify its intentions regarding federal funding controls. The rescission of the OMB memo, combined with ongoing legal challenges and judicial skepticism, has created uncertainty about the White House's ability to implement similar policies through alternative means.

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About Ashton Snyder

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