Court Grants State Attorneys General TRO Enjoining Administration’s Funding “Freeze”

On January 31, 2025, Judge John McConnell of the United States District Court for the District of Rhode Island granted the TRO 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 found that the attorneys general had a likelihood of success on the merits on their claims that the pause violated the Administrative Procedure Act, is arbitrary and capricious; violates separation of powers; and violates the Constitution’s Spending, Presentment, and Take Care clauses.  The Court reached its determination “[b]ecause of the breadth and ambiguity of the ‘pause,’” and therefore anchored its reasoning “based on the effect it will have on many—but perhaps not all—grants and programs it is intended to cover.”

In rejecting the Administration’s argument that the Rescission Memo from OMB mooted the case, the Court relied upon a tweet by the White House Press Secretary –and an email from the EPA sent after the Rescission Memo stating that money would not be disbursed while the EPA determined how to implement the funding “freeze” memo from OMB.  The Court found that “the OMB Directive that the States challenge here [is] still in full force and effect.”

To address the Administration’s statements that the “freeze” or “pause” would continue notwithstanding the Rescission Memo, the scope of the TRO prohibits the Trump Administration Defendants from “reissuing, adopting, implementing, or otherwise giving effect to the OMB Directive under any other name or title or through any other Defendants (or agency supervised, administered, or controlled by any Defendant), such as the continued implementation identified by the White House Press Secretary’s statement of January 29, 2025.”

State Attorneys General File Suit Challenging President Trump’s Freeze on Federal Grants and Loans; D.C. District Court Judge Temporarily Blocks Freeze

On January 28, 2025, attorneys general from 22 states and the District of Columbia filed a complaint in the U.S. District Court for the District of Rhode Island seeking a temporary restraining order against the Trump Administration’s proposed spending freeze on federal grants and loans. The state attorneys general include New York, California, Illinois, Rhode Island, New Jersey, Massachusetts, Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, North Carolina, New Mexico, Oregon, Vermont, Washington, and Wisconsin. The complaint alleges that the Office of Management and Budget’s (OMB) proposed pause on federal spending violates the Administrative Procedure Act because it is contrary to law and arbitrary and capricious, the Separation of Powers doctrine because it usurps the legislative function, and the Spending, Presentment, Appropriations, and Take Care Clauses of the United States Constitution.

Also on January 28, 2025, several nonprofit organizations, led by the National Council of Nonprofits, filed suit in the U.S. District Court for the District of Columbia seeking a temporary restraining order “to maintain the status quo until the Court has an opportunity to more fully consider the illegality of OMB’s actions.” The plaintiffs allege that the OMB’s proposed spending freeze violates the Administrative Procedure, is contrary to the First Amendment, and exceeds OMB’s statutory authority.  Judge Loren AliKhan—just one day after OMB issued the temporary pause, and shortly before it was to take effect—temporarily blocked the proposed pause, preventing the Trump Administration from implementing the spending freeze. Judge AliKhan’s temporary order will remain in effect until February 3, 2025, at 5:00 pm.


Multistate Coalition of AGs Supports FDA’s Denial of Marketing Authorization for Flavored Vape Products

On September 3, 2024, a multistate coalition of 20 attorneys general filed an amicus brief before the U.S. Supreme Court in support of a decision by the U.S. Food and Drug Administration (FDA) to deny companies the ability to market and sell certain flavored e-cigarette products across state lines.

The amicus brief emphasized what the attorneys general described as the “serious health risks” of flavored e-cigarettes (particularly for youth), and argued that the FDA’s statutory authority over the introduction of new tobacco products into interstate commerce is a crucial complement to state and local regulation of flavored e-cigarettes.  The attorneys general explained that while states have adopted a variety of measures to restrict sales of flavored e-cigarettes, these products continue to flow through interstate commerce, necessitating continued FDA oversight.

The case is Food and Drug Administration v. Wages and White Lion Investments, LLC, dba Triton Distribution, et al., and arises from a lawsuit filed by companies challenging the FDA’s denial of their applications to market and sell flavored e-cigarette products across state lines.  In January 2024, the Fifth Circuit Court of Appeals ruled in favor of the applicants’ challenge.  The attorneys general encourage the Supreme Court to reverse that decision.

The amicus brief was filed by the attorneys general for Arizona, California, Colorado, Connecticut, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington.  A copy of the brief may be found here

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