Federal Judge Orders Trump Administration to Release Withheld Funds After Violating Court Order

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The legal battle over President Donald Trump’s federal funding freeze has taken another turn, with a U.S. judge ruling on Monday that the administration violated a court order by continuing to withhold funds.

U.S. District Judge John McConnell of Rhode Island had previously issued a temporary restraining order (TRO) on Jan. 31, blocking the administration’s attempt to freeze federal grants and other funding. However, a group of Democratic attorneys general, including New Mexico’s Attorney General Raúl Torrez, argued that the administration was still holding back funds despite the court’s directive.

On Monday, Mc-Connell reinforced his ruling, stating that the administration must immediately release any withheld funds and restore funding across all affected programs. The ruling marks the first instance of a judge finding the Trump administration in violation of a court order in this case.

In his ruling, Judge McConnell criticized the Trump administration’s handling of the funding freeze, calling it a broad and unconstitutional move that has caused “irreparable harm” nationwide. The judge reiterated that his TRO applied to all funding impacted by the freeze, countering the Trump administration’s argument that certain environmental and infrastructure funds were exempt.

“The broad categorical and sweeping freeze of federal funds is, as the court found, likely unconstitutional and has caused and continues to cause irreparable harm to a vast portion of this country,” McConnell wrote in his decision.

The Trump administration announced Monday that it is appealing the ruling, continuing its legal battle to defend the funding pause as part of its broader push to reduce government spending and reshape federal bureaucracy.

W hile the legal fight plays out in Washington, the effects of the funding freeze have been felt in Cibola County.

As previously reported, Grants-Cibola County School District was awarded federal funding to strengthen cybersecurity protections—a grant that faced uncertainty when the Trump administration attempted to pause all federal disbursements. Some state-funded infrastructure projects, including those supported by the Inflation Reduction Act, have faced delays, with New York Attorney General Letitia James reporting that agencies were still unable to access necessary funds.

The Trump Administration must now release all funds that were frozen under Trump’s executive orders, as mandated by Judge McConnell. A hearing on a longer-term order will be held in the coming weeks.

The Trump administration is appealing the decision, which could further complicate the timeline for funding restoration.

At the same time, new lawsuits against the administration are emerging, including a case challenging Trump’s attempt to restructure the U.S. Agency for International Development (USAID). Federal employee unions argue that the administration violated another court order by failing to reinstate USAID workers placed on administrative leave.

For Cibola County, the ongoing legal battles mean continued uncertainty over federal funding for schools, infrastructure, and social programs.