District Court Orders Trump Administration to Release Federal Funding to States and Enjoins Implementation of Federal Funding Freeze

On March 6, 2025, Judge John J. McConnell of the United States District Court for the District of Rhode Island granted the Motion for Preliminary Injunction sought by 22 state attorneys general and the Attorney General for the District of Columbia challenging the Trump Administration’s “pause” or “freeze” of grant funding payments. The Court, ordered the Trump Administration to “release and transmit any disbursements to the States on awarded grants, executed contracts or other executed financial obligations that were paused on the grounds of the OMB Directive” and other related Executive Orders. In his 45-page order, Judge McConnell held that the Trump Administration’s freeze on federal funding “fundamentally undermines” the separation of powers.

In support of their motion, the state attorneys general presented evidence of the widespread effects of the federal funding freeze, which they said has impacted “nearly all aspects of the States’ governmental operations” and has inhibited the States’ “ability to administer vital services to their residents.” These harms, they argued, are a direct result of the efforts taken by the Trump Administration to withhold federal funds and implement the federal funding freeze.

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State Attorneys General Urge Congress to Finish the Job on Retail Theft Legislation


On February 25, 2025, a bipartisan group representing a majority of state attorneys general sent a Letter to Congress urging bipartisan congressional action to address organized retail theft.  Citing gains made in the last Congress with the introduction of the Combating Organized Retail Crime Act of 2023 and the Organized Retail Crime Center Authorization Act of 2023, the Letter explains that the legislation is needed to provide necessary state and federal resources to curtail organized retail crime and the violence associated with it in communities across the country. Impacted retailers include Walgreens, Walmart and Target, which have had to close stores and ramp up security to protect employees and stem losses, with total financial losses from organized retail theft amounting to over $121 billion. The Letter notes that approximately 76% of store managers report impacts on their employees.

Federal legislation is needed, according to the authors, because the problem is larger than state resources available.  The states seek greater cooperation with federal law enforcement through a proposed Organized Retail Crime Coordination Center at the Department of Homeland Security to address the complexity and scope of the organized retail crime problem, which also includes supply chain infiltration by organized crime. The states urge Congress to strengthen federal penalties for supply chain thefts and to appropriate additional funding to the states for law enforcement.

The letter is signed by attorneys general from Alabama, Alaska, Arizona, Arkansas, Delaware, Connecticut, Florida, Georgia, Hawaii, Illinois, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, Washington, D.C., and West Virginia. 

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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