White House Will Defend Trump’s Funding Freeze Order in Court

President Donald Trump, alongside White House press secretary Karoline Leavitt, speaks to reporters while in flight on Air Force One to Joint Base Andrews, on Jan. 27, 2025. Mandel Ngan/AFP via Getty Images

The White House confirmed it will defend President Donald Trump’s move earlier this week to freeze federal funding and grants, which was blocked temporarily on Tuesday by a judge.

Chief U.S. District Judge John McConnell in Providence, Rhode Island, will weigh a bid by 22 mostly Democratic-led states and the District of Columbia for a temporary restraining order. The states say the freeze could have a devastating effect on their budgets.

“Everything this administration does is within the confines of the law, so we’re prepared to fight this battle in court,” White House press secretary Karoline Leavitt told reporters outside the White House on Wednesday.

Earlier this week, a memo released by the Office of Management and Budget (OMB) that could potentially impact billions of dollars to local and state governments said grants and loans would be placed on hold while the Trump administration determines whether they are in accord with the president’s goals.

In the memo, Acting OMB Director Matthew Vaeth said that the use of federal resources for policies at odds with the president’s agenda “is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” including programs on diversity, equity, and inclusion (DEI).

The freeze includes any money intended “for foreign aid” and for “nongovernmental organizations,” among other categories.

“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” the memo said.

Exceptions were carved out for Medicare, Medicaid, Social Security, and Supplemental Nutrition Assistance Program (SNAP) payments, according to that memo and a subsequent one released on Tuesday.

However, at one point yesterday, Medicaid portals were down across the United States, as confirmed in a statement by Leavitt to The Epoch Times.

“The White House is aware of the Medicaid website portal outage. We have confirmed no payments have been affected—they are still being processed and sent. We expect the portal will be back online shortly,” the statement said.

Aside from the Democratic state attorneys general, multiple congressional Democrats objected to the freeze, with two demanding that the OMB ensure that “all federal resources are delivered in accordance with the law.”

Democrats further contended the freeze was an illegal attack on Congress’s authority over federal spending. Republicans largely defended it as fulfilling Trump’s campaign promise to rein in the $6.75 trillion federal budget.

In suing to block the measure, the 23 attorneys general argued that the policy was unconstitutional because Congress had already determined how the funds would be spent.

They also said it would jeopardize disaster relief funds to help Southern California rebuild following the recent wildfires.

If Judge McConnell blocks the freeze, the Trump administration could still appeal, which would be filed with the First U.S. Circuit Court of Appeals.

Reuters contributed to this report.