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Appeals Court Upholds Block on Trump Administration's $3 Trillion Funding Freeze

The First Circuit Court rejected arguments defending the freeze, citing constitutional overreach and significant harm to states and federal programs.

U.S. President Donald Trump signes a document in the Oval Office at the White House in Washington, D.C., U.S., March 26, 2025. REUTERS/Evelyn Hockstein
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Overview

  • The U.S. Court of Appeals for the First Circuit unanimously upheld a lower court's injunction blocking the Trump administration's proposed freeze on $3 trillion in federal grants, loans, and financial aid.
  • The court ruled that the freeze violated the separation of powers by infringing on Congress' exclusive authority to allocate federal funds.
  • Judges highlighted the substantial harm the freeze would have caused, including disruptions to state programs, university research, and financial planning.
  • The Trump administration rescinded the memo initiating the freeze but continues to defend its legality, with a potential appeal to the Supreme Court looming.
  • This legal battle underscores broader tensions over the limits of executive authority and the judiciary's role in maintaining checks and balances.