A federal judge has blocked the Trump administration from freezing funds for climate and infrastructure grants, ruling that the pause was illegal. The administration had frozen funds awarded under the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, citing a presidential order to review the funds' consistency with the law and Trump's agenda. Nonprofit groups sued, arguing that the freeze was arbitrary and capricious, and violated the Administrative Procedure Act. The judge, Mary S. McElroy, agreed, finding that the freeze failed to account for the significant reliance interests of grantees and other recipients. Government lawyers argued that agencies had the discretion to pause funding, but the judge countered that agencies do not have unlimited authority to further a president's agenda. The judge also noted that agencies may be able to pause funding on a case-by-case basis, but not broadly. The ruling entered a preliminary injunction against the US Department of Agriculture and five other agencies. The administration had cited the need to review the funds, but the judge said that courts must weigh in on the lawfulness of policies when constitutionally required. The White House did not respond to a request for comment on the ruling. The ruling is a significant blow to the Trump administration's efforts to review and potentially redirect funds allocated by Congress.
zerohedge.com
zerohedge.com
