U.S. President Donald Trump faced another legal setback on Tuesday as an appeals court refused to halt a court order requiring his administration to continue federal spending. The decision came after the U.S. Department of Justice sought to pause a ruling issued by a Rhode Island federal judge, who found that the administration had defied an earlier court order by withholding billions of dollars in federal funds.
The Justice Department argued that U.S. District Judge John McConnell had engaged in "intolerable judicial overreach," asserting that Trump's authority to direct agencies in line with his policy preferences was "well-settled." However, a three-judge panel from the Boston-based 1st U.S. Circuit Court of Appeals declined to intervene, expressing confidence that McConnell would address the administration's concerns promptly. The panel noted that the administration could still seek to pause McConnell's order by filing additional documents by the end of Thursday.
This ruling marked the first appellate court defeat for Trump's agenda since he returned to office on January 20. The panel, composed of U.S. Circuit Judges David Barron, Lara Montecalvo, and Julie Rikelman—all appointed by Democratic presidents—did not prevent the administration from pursuing further legal action. The White House vowed to continue its fight, with press secretary Karoline Leavitt calling the injunctions "a continuation of the weaponization of justice against President Trump."
The 1st Circuit's decision comes amid ongoing criticism from Trump, key administration officials, and billionaire ally Elon Musk, who have accused judges of overstepping their authority by blocking major elements of the president's agenda. Trump took to social media on Tuesday, claiming that "certain activists and highly political judges" were attempting to hinder his administration's efforts to reduce federal government waste.
Musk, the world's richest man, echoed these sentiments, accusing judges of undermining democracy and calling for the impeachment of a New York judge who had blocked his Department of Government Efficiency from accessing Treasury Department systems.
These remarks have raised concerns about the Trump administration's willingness to adhere to court rulings. The American Bar Association stated Monday warning of "wide-scale affronts to the rule of law itself" under Trump's leadership.
The case before Judge McConnell was initiated by Democratic attorneys general from 22 states and the District of Columbia, who sued after the White House's Office of Management and Budget (OMB) issued a memo announcing a spending freeze affecting trillions of dollars. Although OMB later withdrew the memo, McConnell determined that a temporary restraining order was still necessary, citing evidence that the funding freeze remained in effect and that the memo's withdrawal was merely "in name only."
This lawsuit is one of many in which Democratic-led states, civil rights groups, and progressive organizations have successfully obtained court orders temporarily blocking Trump's efforts to shrink the federal government, cut spending, and implement stricter immigration policies. On Friday, the Democratic attorneys general urged McConnell to enforce his funding freeze order, arguing that the administration continued to withhold billions of dollars in infrastructure and environmental funding under the Inflation Reduction Act and the Infrastructure Improvement and Jobs Act.
McConnell, appointed by former Democratic President Barack Obama, reiterated on Monday that his earlier order was "clear and unambiguous" and prohibited any categorical pauses or freezes in federal funding. Rhode Island Attorney General Peter Neronha, a key figure in the litigation, praised the 1st Circuit's decision, stating that it ensured McConnell's "order remains in full force, and we expect the administration to comply."
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