The Courts Blocked Trump’s Federal Funding Freeze. Agencies Are Withholding Money Anyway.
by Jake Pearson and Anjeanette Damon
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When the federal courts first blocked the Trump administration’s funding freeze, Jessyca Leach was cautiously optimistic.
For days, the pause had prevented her from accessing the money she needs for her Phoenix health clinic to serve thousands of at-risk people, most of them poor and many of them members of the LGBTQ community. Things had gotten so bad that she had to lay off three employees and cut the salaries of her leadership team, including her own.
So when the funding started to flow again last week, days after the court orders, Leach hoped her ordeal would be over. It wasn’t.
Her federal dollars were accompanied by an ominous note from the payment processing arm of the U.S. Department of Health and Human Services. Citing “Executive Orders regarding potentially unallowable grant payments,” the agency said that it would continue “taking additional measures to process payments” and that its reviews “will result in delays and/or rejections of payments.”
“If it’s not there,” Leach said of the federal money that covers the salaries for 40% of her staff, “things get really bad, really fast.”
The notice Leach received was one of several indications over the past week that the Trump administration is not backing down in its fight to slash spending and dramatically reshape the federal government, despite multiple court orders explicitly restraining the president’s sweeping executive actions. In some cases, to get around the judges’ rulings, the administration has cited a memo that it says is not subject to the existing orders. In others, it denied funding to organizations because their granting agencies are not defendants in one of the ongoing legal challenges. In others still, it has withheld funds by citing the agencies’ own judgment, not the president’s directives.
That argument in particular has been met with skepticism by one of the federal judges hearing lawsuits over the administration’s spending freeze. U.S. District Judge Loren AliKhan wrote in a Feb. 3 temporary restraining order that “the court is not persuaded that the continuing freezes are solely due to independent agency action” and that “both logic and record evidence point to the opposite conclusion.”
Nevertheless, the administration is pressing the same argument in a separate case brought by a coalition of 23 state attorneys general, who assert that the government continues to effectively pause spending in defiance of the court’s rulings. The administration denied that claim in a filing on Sunday, arguing that it is making “good-faith, diligent efforts to comply with the injunction” and that to the extent the court doesn’t agree with the government’s interpretation of the order, it should clarify “the intended scope of its temporary restraining order.”
On Monday, the judge overseeing that case, John J. McConnell Jr., did just that, ruling that the Trump administration had violated his restraining order by keeping funds frozen. He wrote that the government’s “broad categorical and sweeping freeze of federal funds” was “likely unconstitutional” and that it must immediately restore funding across the board, unless it could show the court “a specific instance where they are acting in compliance with this order but otherwise withholding funds due to specific authority.”
The Constitution gives Congress the power to tax and spend, but legal experts say the Trump administration’s actions set the stage for........© ProPublica
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