U.S. President Donald Trump lost his latest legal battle on Tuesday when an appeals court refused to pause a judge’s order requiring the government to continue disbursing funds. This decision comes as part of an ongoing dispute over Trump’s administration’s attempts to freeze federal spending.
The U.S. Department of Justice had requested the 1st U.S. Circuit Court of Appeals in Boston to halt a ruling made by a Rhode Island federal judge, issued on Monday. The judge, U.S. District Judge John McConnell, had found that the Trump administration was defying a January 31 ruling by continuing to withhold billions of dollars in federal funding.
The Justice Department argued that Judge McConnell was overstepping his authority, asserting that the president’s power to direct agencies in line with his policy priorities was well-established. However, the three-judge appellate panel rejected this argument in a brief ruling, stating it was confident that McConnell would address the concerns raised by the administration soon. The ruling also noted that the decision did not prevent the administration from seeking to have McConnell’s order put on hold again in the future.
This ruling is the first appellate setback for Trump’s agenda since he resumed office on January 20. The court allowed the administration to file additional requests to challenge the ruling by Thursday.
The three-judge panel, composed of judges David Barron, Lara Montecalvo, and Julie Rikelman—all appointed by Democratic presidents—stood by the original decision. The White House responded, maintaining that it would continue to challenge the ruling in court. White House press secretary Karoline Leavitt described the court’s decision as part of the “weaponization of justice” against Trump.
Trump, along with high-profile supporters like billionaire Elon Musk, has criticized judges who block his administration’s policies, suggesting that the judiciary is interfering with presidential authority. Trump took to social media to accuse “activist” judges of attempting to hinder his efforts to reduce government waste, while Musk went further, claiming that democracy was being undermined by a “judicial coup.”
These remarks have sparked concerns over whether Trump’s administration would comply with court rulings. The American Bar Association expressed its worry about the broader implications, saying that the president’s actions were threatening the rule of law.
The case stems from a lawsuit filed by Democratic attorneys general from 22 states and the District of Columbia. They sued after the White House’s Office of Management and Budget (OMB) issued a memo calling for a freeze on federal spending, which would have affected trillions of dollars. The memo was later withdrawn, but Judge McConnell concluded that a temporary restraining order was still necessary due to evidence that the freeze was ongoing, despite the rescission of the memo.
The lawsuit is one of many legal battles involving Trump’s efforts to cut federal spending, reduce government size, and limit immigration. The Democratic-led states and advocacy groups have won several court orders blocking parts of the administration’s agenda. Last Friday, state attorneys general pushed for the enforcement of the funding freeze, arguing that the administration still aimed to withhold significant funds under the Inflation Reduction Act and the Infrastructure Improvement and Jobs Act.
Judge McConnell, appointed by former President Barack Obama, reaffirmed his earlier order on Monday, stating that it was “clear and unambiguous” and barred any categorical pauses or freezes in federal funding.
Rhode Island Attorney General Peter Neronha, who is leading the lawsuit, welcomed the 1st Circuit’s decision, stating that it ensures McConnell’s order remains in effect and that the administration must comply.
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