Federal Appeals Court Blocks Trump Administration’s $3 Trillion Funding Freeze

The First Circuit Court of Appeals upheld a lower court ruling, citing constitutional violations and substantial harm to states, as the White House considers a possible Supreme Court appeal.

The U.S. Court of Appeals for the First Circuit upheld a lower court's permanent injunction against the Trump administration's attempt to freeze $3 trillion in federal grants and loans.
Judges ruled the freeze violated the constitutional separation of powers by undermining Congress' authority to allocate funds.
The court highlighted the freeze's significant harm to states, including new debt obligations, disrupted university research, and impeded planning and operations.
The Trump administration rescinded the memo initiating the freeze but criticized court rulings and media coverage as causing confusion.
The White House has not yet announced whether it will appeal to the Supreme Court, where conservative justices hold a majority.