ARTICLE
4 February 2025

Federal Judge In State AG Suit Signals Intention To Enjoin Funding Freeze, Despite Second OMB Memo Rescinding Prior Memo Directing Freeze

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In the suit brought in federal district court in Rhode Island by a group of 23 state attorneys general to challenge the Trump Administration's cessation of federal funding payments...
United States Litigation, Mediation & Arbitration

In the suit brought in federal district court in Rhode Island by a group of 23 state attorneys general to challenge the Trump Administration's cessation of federal funding payments, District Court Judge John McConnell Jr. indicated on Wednesday, January 29, 2025, the Court's intention to grant the TRO sought by the State AGs. An injunction in the State AGs' suit would follow an injunction granted by a D.C. District Court on Tuesday, January 28, 2025, in a suit challenging the funding freeze brought by a group of not-for-profit entities.

Despite a two-sentence memo issued by the White House Office of Management and Budget stating that the prior funding freeze memo was "rescinded," the Court reportedly described the OMB's memoranda as "hugely ambiguous," and relied upon statements of White House Press Secretary, Karoline Leavitt, in indicating the Court's intention to grant the injunction.

Press Secretary Leavitt tweeted that the memo rescinding the funding freeze memo did not, in fact, lift the freeze, but only rescinded "the OMB memo." Leavitt made clear on behalf of the administration that the freeze remained in effect, but only "the memo" was rescinded to "end any confusion created by" the D.C. District Court's injunction.

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