Appeals court denies Trump bid to pause spending freeze ruling

Erik Larson, Bloomberg News on Mar 26, 2025

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A court order blocking President Donald Trump’s freeze on trillions of dollars in spending for grants, loans and other financial assistance will remain in place while the government challenges the ruling, an appeals court said.

Trump’s request to stay a lower court injunction was denied Wednesday by the U.S. Court of Appeals for the 1st Circuit, the latest setback for the president in lawsuits over the chaotic and unprecedented spending freeze imposed by the White House in January. Payments must continue while the legal fight proceeds toward a potential trial, likely months away.

The case — among more than 150 lawsuits challenging Trump’s policies — may ultimately be decided by the U.S. Supreme Court. The decision is a victory for Democratic-led states that sued and won a preliminary injunction forcing the federal government to restart the flow of funds, including billions of dollars for a wide range of state initiatives and projects.

The nationwide preliminary injunction was issued March 6 by Chief U.S. District Judge John McConnell of Rhode Island. The judge said the spending freeze had “catastrophic consequences” that were still rippling through the country, and that a court order was necessary to keep the funds flowing.

A similar nationwide injunction against the spending freeze was also handed down in a parallel suit filed by a group of nonprofit organizations in federal court in Washington. Trump is also appealing that decision.

The case is New York v. Trump, 25-cv-39, US District Court, District of Rhode Island (Providence).