Federal Judge Blocks Trump Administration’s Funding Freeze for Climate Work. Will the White House Comply?

Trump’s funding freeze for the Inflation Reduction Act is now paused, but only for the 23 states and the District of Columbia that sued to restore the flow of funds.

A federal judge Thursday blocked the Trump administration’s freezing of congressionally approved federal funding, which has affected a variety of services and programs across the country, including climate and conservation work approved under the Inflation Reduction Act. 

Judge John McConnell of the U.S. District Court of Rhode Island issued a preliminary injunction halting agencies from continuing their freeze of federal funds, writing in his decision that the executive branch does not have the power to dictate the ending of programs and funding approved by Congress.

McConnell’s ruling represented a major win for a group of 23 states and the District of Columbia that sued Trump over the freeze, as the case now moves forward. But it remains to be seen whether funds to local governments and businesses for climate work will begin to flow again.

“The Executive’s categorical freeze of appropriated and obligated funds fundamentally undermines the distinct constitutional roles of each branch of our government,” McConnell wrote in his decision. “The interaction of the three co-equal branches of government is an intricate, delicate, and sophisticated balance—but it is crucial to our form of constitutional governance. Here, the Executive put itself above Congress.”

President Trump issued a series of sweeping executive orders to begin his presidency, including “terminating the Green New Deal” via funding in the Inflation Reduction Act—former President Joe Biden’s signature piece of climate legislation. Trump’s order paused all distribution of funds to states, local municipalities, nonprofits and businesses working on developing renewable energy resources, habitat restoration work, drought mitigation efforts and more. 

The order created panic among businesses and local leaders. In many cases, the federal government had signed contracts, but suddenly the funding for them was no longer flowing. In some cases, work halted. People lost jobs. Organizations canceled programs.

“This was an illegal and reckless attempt to withhold critical funding that states rely on to serve their communities,” Arizona Attorney General Kris Mayes said in a press release. “This ruling is a victory for Arizonans and millions of Americans who depend on these essential federal funds.”

The White House did not immediately respond to a request for comment on the court order and if it would comply.

The coalition of states sued over the administration’s funding freeze on Jan. 28, when McConnell granted a temporary restraining order against the Trump administration to pause the freeze until a further decision from the court. The coalition then requested a preliminary injunction and filed a second motion that funds for the Federal Emergency Management Agency be unfrozen as well, which today’s order also grants.

Tuesday’s injunction, however, only applies to D.C. and the 23 states that sued, after the U.S. Department of Justice argued the case should only apply to the states involved. “The entities now feeling the biggest pain and irreparable harm from these federal funding freezes will be Republican states,” said Jillian Blanchard, vice president of climate change and environmental justice at Lawyers for Good Governance. 

Despite various court orders for the federal government to unblock the funding, Blanchard said, the White House has continued to “find random and unsubstantiated loopholes” to continue the pause in funding. One example, she said, is using executive orders related to diversity, equity and inclusion to continue the funding freezes. 

Bigger than the funding freeze, Blanchard said, is the threat the freeze poses to the separation of powers in the federal government, something McConnell expressed in his order as well.

“Our founders, after enduring an eight-year war against a monarch’s cruel reign from an ocean away, understood too well the importance of a more balanced approach to governance,” McConnell wrote. “They constructed three co-equal branches of government, each tasked with their own unique duties, but with responsibilities over the other branches as a check in order to ensure that no branch overstepped their powers, upsetting the balance of the fledgling constitutional republic.”

Cover photo:  Workers install solar panels for the Los Angeles Department of Water and Power’s solar and battery storage plant in the Mojave Desert of Kern County on Nov. 25, 2024. Credit: Brian van der Brug/Los Angeles Times via Getty Images