On January 31, the U.S. District Court for the District of Rhode Island issued a temporary restraining order (TRO) against the executive branch’s directive to pause federal financial assistance. The TRO was motioned by 22 states attorneys general. The White House had previously issued several executive orders to implement President Trump’s policy priorities, directing the Office of Management and Budget (OMB) to issue a memorandum that temporarily paused funds related to grants, loans and other financial assistance programs. Although the OMB memorandum was subsequently rescinded, the court determined that the issues remained active due to ongoing implementation efforts.
In its decision to grant the TRO, the court evaluated four factors: likelihood of success on the merits; potential for irreparable injury; balance of equities; and effect on the public interest. The court found the states were likely to succeed on the merits of their claims, as the executive branch’s suspension of funds lacked legal authority and violated the separation of powers.
The court further concluded the states would likely suffer “severe and irreparable harm” due to the pause in federal funding, which threatened to disrupt essential state services such as public safety, childcare and disaster relief efforts. In considering the balance of equities and public interest, the court determined that these factors also supported granting the TRO. The court noted that preventing the directive’s enforcement would ensure the disbursement of congressionally-appropriated funds, while denying the order would leave states in financial uncertainty.
