Washington, Feb 11 (V7N), Reuters News – A U.S. judge ruled on Monday, February 10, that the Trump administration had violated a court order by continuing to withhold federal funds. The court has directed the government to immediately release any withheld funds.

U.S. District Judge John McConnell, based in Providence, Rhode Island, had initially blocked the freeze on federal funds with a temporary restraining order (TRO) on January 31. The ruling followed a lawsuit filed by a group of Democratic state attorneys general, who argued that the administration had not complied with the court's order. These attorneys general stated last week that certain funds, including those for key infrastructure projects, were still being withheld.

This marks the first instance where a judge found the Trump administration in violation of a court order regarding a policy freeze. The Trump administration has announced plans to appeal the ruling.

“The broad, categorical freeze of federal funds is likely unconstitutional and has caused significant harm to a large portion of this country,” Judge McConnell said on Monday. “These pauses in funding violate the clear terms of the TRO.”

The judge ordered that all the frozen funds be released, at least until a hearing can be held on the states' request for a longer-term injunction.

On February 6, a lawyer representing New York Attorney General Letitia James informed the court that state agencies were still struggling to access federal funds, including billions designated for infrastructure projects under the Inflation Reduction Act.

The Trump administration, however, argued that certain types of funding, particularly for environmental and infrastructure projects, were not affected by the court’s order, claiming that any delays in payments were due to "operational and administrative reasons."

Judge McConnell, however, maintained that his original order was "clear and unambiguous" and applied to all funds that had been frozen due to the Trump administration's executive orders.

The lawsuit was originally filed after the White House’s Office of Management and Budget (OMB) issued a memorandum announcing a broad freeze on federal spending. Although OMB withdrew the memorandum after the lawsuit was filed, the legal challenges have continued.

The funding freeze was part of the Trump administration's larger efforts to limit federal spending and restructure the federal bureaucracy, which has resulted in several lawsuits. Additionally, federal employee unions have accused the Trump administration of violating a court order requiring the reinstatement of U.S. Agency for International Development (USAID) employees who had been placed on administrative leave.

This case regarding the federal funds freeze is significant, as it underscores the ongoing tensions between the Trump administration’s executive actions and the judicial system's role in overseeing and enforcing government policies.

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