Trump Loses Court Battle Over Federal Funding Freeze as Appeals Court Rejects Request

In a setback for President Donald Trump’s administration, the 1st U.S. Circuit Court of Appeals declined to pause a federal judge’s ruling requiring the government to continue delivering funds, rejecting the Justice Department’s argument that the order interfered with the president’s authority. The court’s decision, issued by a panel of three Democratic-appointed judges, marked the first major legal defeat for Trump’s agenda since his return to office on January 20.

The lawsuit, filed by Democratic attorneys general from 22 states and the District of Columbia, challenged the administration’s attempt to freeze billions of dollars in federal funding, including infrastructure and environmental projects. U.S. District Judge John McConnell ruled that the administration had defied his earlier order by continuing to withhold funds, prompting an appeal from the Justice Department. The 1st Circuit, however, sided with McConnell, emphasizing that his order was “clear and unambiguous.”

The ruling comes amid escalating tensions between the administration and the judiciary, with Trump and his allies, including billionaire Elon Musk, criticizing judges who have blocked key policy moves. White House press secretary Karoline Leavitt denounced the court’s decision, calling it part of a “weaponization of justice” against the president. Meanwhile, legal experts and advocacy groups have raised concerns about the administration’s willingness to comply with court rulings, warning of broader implications for the rule of law.

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