Court upholds order blocking Trump administration freeze on federal funds to states

Kwame Raoul Attorney General at Illinois
Kwame Raoul Attorney General at Illinois
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Attorney General Kwame Raoul announced on Mar. 17 that the U.S. Court of Appeals for the 1st Circuit has largely upheld a lower court’s order blocking an attempt by the Trump administration to freeze trillions of dollars in federal funding to states.

The decision is significant because it maintains access to essential federal funds that support a range of public services, including health care, childcare, medical research, and crime victim compensation. The ruling also reinforces the constitutional principle that only Congress has the authority to appropriate funding.

Raoul said, “This is a huge win for the health and safety of Illinoisans and all Americans. Within the first week of President Trump’s second term, his administration attempted to freeze trillions of dollars that they did not have the legal authority to freeze. We pushed back. We said no. We came together under the direction of the law to ensure the Trump administration could not take action that could have a devastating impact on funding for our state’s most vulnerable residents.”

He continued, “The U.S. Constitution is clear: Congress is granted the power to appropriate funding. The executive branch cannot unilaterally disregard appropriations passed by a separate branch of government. Now, the court’s opinion prevents the executive from running roughshod over that principle. Blocking this freeze ensures our residents, including our children, are safe with access to health care, childcare, lifesaving medical research, mental health programs and sex education in public schools, and crime victim compensation.”

Raoul also highlighted how important this funding is for Illinois universities and their work with National Institutes of Health grants: “This federal funding is also essential for Illinois universities that depend on National Institutes of Health grants to develop new medical treatments that save lives. I applaud the court’s decision and will continue to fight any reckless and illegal efforts that threaten this essential funding for the health and safety of our residents.”

In January 2025, Raoul co-led a coalition with 22 other attorneys general in filing suit against a new federal policy aimed at withholding these funds from states. A preliminary injunction was granted in March 2025 before being affirmed by this latest appellate decision.

The Illinois Attorney General has advocated for vulnerable groups such as workers, immigrants, and seniors according to its official website. The office handles thousands of consumer complaints each year according to its official website and aims to protect consumers while promoting safer communities as well as environmental and rights issues according to its official website. Its advocacy extends across Illinois according to its official website, partnering with law enforcement agencies in support of crime victims and open government initiatives according to its official website. Services offered include complaint filing related to consumer fraud or civil rights matters according to its official website.

The broader implication of this ruling may be seen in how it preserves state access to critical resources during times when executive actions seek unilateral changes in federal-state relations regarding appropriations.



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