States ask judge to bolster block on federal funding freeze

(CN) — Nearly two dozen states asked a federal judge on Friday to further block the Trump administration’s federal funding freeze that has withheld trillions of dollars from federal programs encompassing everything from clean energy initiatives to housing support.

“We are here today because shortly after inauguration, the lights started to go out,” Rhode Island Attorney General Office’s deputy chief Sarah Rice said at the start of the hearing.

The states asked U.S. District Judge John McConnell to impose a preliminary injunction on the freeze after he already approved a temporary restraining order against the Trump administration and found the president has continued to defy his orders to resume fund disbursement.

Rice said the funding freeze disrupted a “carefully orchestrated process,” including states’ ability to make payroll and grant funding for farmers and beekeepers, university research grants, and water safety testing.

She added that the loss of money for these programs is not the only harm the funding freeze has caused, pointing specifically to how the recipients of these programs have been affected.

“One is the harm to people that happens when these programs are disrupted, and the second is the injury caused by the chaos itself,” Rice said.

For instance, Rice said the states have experienced disruption in law enforcement, emergency services, and childcare programs funded by federal grants.

But Daniel Schwei, an attorney with the Department of Justice representing the Trump administration, said the states’ claims are too “broad and amorphous.”

He added that the executive branch had the authority to impose the funding freeze because the order simply allowed agencies the discretion to pause certain funding programs.

“The president is allowed to tell agencies, ‘If you have the discretion to pause, you should pause,’” Schwei said.

He added that there are some programs where pausing federal funding is perfectly reasonable and disagreed that every program that saw funding freezes imposed excessive harm.

“There probably are funding programs where a temporary pause is perfectly legitimate under the governing appropriations laws and grant conditions,” Schwei said. “And for those, there should be no relief as to them because what the executive did was lawful.”

While Schwei asserted that Trump has the legal authority to pause funding, McConnell asked where the president gets that power.

“Where does the executive get the power to categorically freeze obligated funding as awarded by Congress?” McConnell asked.

In response, Schwei said the president told agencies to “follow the law” but added they should pause certain types of funding if the law gives them discretion to pause.

In the lawsuit, the states claim the funding freeze impeded their ability to ensure residents have quality healthcare, law enforcement protection, safe roads and emergency assistance in the aftermath of disasters.

“On a daily basis, plaintiff states rely on federal funding to provide essential services — including childcare, health care, public safety, emergency management, workforce development, unemployment insurance, transportation and infrastructure, and so much more — to all of their residents,” the states say in their motion for a preliminary injunction.

A second lawsuit has been filed in Washington, D.C., by groups representing thousands of nonprofits and small businesses challenging the funding freeze.

U.S. District Judge Loren AliKhan indicated she would impose a temporary restraining order on the Trump administration’s freeze as well, mirroring McConnell’s decision.

McConnell said the restraining order will stay in effect until he issues a decision, which he plans to make within a week.

Follow @NikaSchoonover