By Nate Raymond(Reuters) – On Thursday, a federal judge expressed his readiness to uphold an order that he issued preventing the Trump administration from halting federal grants, loans, and other financial aid. This move came after Democratic-led states raised concerns that billions of dollars in funding were still being held up.U.S. District Judge John McConnell in Providence, Rhode Island, conveyed during a virtual court session that state agencies had valid worries regarding their inability to fully access funds nearly a week after he issued a temporary restraining order. This order was issued on January 31 at the request of Democratic attorneys general from 22 states and the District of Columbia, who argued that it was necessary despite the White House’s Office of Management and Budget revoking its directive to freeze funding.McConnell justified the order by pointing to evidence suggesting that the policy remained in effect despite the revocation by OMB, which he deemed as merely a superficial move potentially aimed at hindering legal challenges. A representative from the office of Democratic New York Attorney General Letitia James informed McConnell that state agencies were still encountering difficulties in accessing entitled federal funds even after his ruling was issued. The lawyer mentioned concerns raised by the defendants regarding certain funds allegedly not covered by the temporary restraining order, including significant amounts designated for infrastructure projects and the Inflation Reduction Act.Muqaddam, the attorney from James’ office, emphasized that the January 31 order issued by McConnell clearly stated that no funding should be put on hold. Despite this, state agencies were reportedly struggling to access the designated funds and were informed that the funds were frozen. McConnell, who was appointed by former Democratic President Barack Obama, reiterated his stance that his order was unambiguous and assured that he was prepared to enforce it as necessary. He invited the concerned parties to present any issues to him promptly for resolution and tentatively scheduled a hearing for February 21 to discuss the potential issuance of a longer preliminary injunction.The White House did not immediately respond to requests for comment. In a filing related to a separate case on Wednesday, the U.S. Justice Department acknowledged that some federal agencies were in the process of starting to distribute the appropriate funding but claimed to be unaware of any ongoing implementation of the OMB memo’s directives.Furthermore, in a letter addressed to EPA Administrator Lee Zeldin on Thursday, four Democratic lawmakers, including U.S. Senator Jeffrey Merkley, expressed their outrage over what they perceived as a persistent freeze on funding from the environmental agency. The EPA did not provide an immediate response to the request for comment. (Reporting by Nate Raymond in Boston; Additional reporting by Valerie Volcovici; Editing by Alexia Garamfalvi and Alistair Bell)
