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A federal judge has halted the Trump administration’s attempt to freeze billions in climate and infrastructure grants initially approved under President Joe Biden’s administration. U.S. District Judge Mary McElroy in Rhode Island issued an injunction after environmental and nonprofit groups argued that pausing these funds violated federal law.
The blocked funds were part of two major legislative packages: the $1 trillion Infrastructure Investment and Jobs Act of 2021 and the 2022 Inflation Reduction Act. These laws funded projects aimed at combating climate change, reducing pollution, and modernizing public infrastructure. The Trump administration attempted to pause the funding through an executive order on his first day back in office, calling for a review to align spending with his policy priorities.
Following the order, agencies including the Environmental Protection Agency, and the Departments of Agriculture, Energy, Interior, and Housing and Urban Development suspended disbursements. The lawsuit—filed by the Woonasquatucket River Watershed Council, Eastern Rhode Island Conservation District, National Council of Nonprofits, and Green Infrastructure Center—contended that these agencies overstepped their authority by freezing already-awarded grants.
Judge McElroy ruled that federal agencies cannot unilaterally override Congress-approved funding or indefinitely delay implementation of statutory mandates. Advocacy group Democracy Forward, which led the legal effort, called the freeze an abuse of executive power threatening public health and environmental initiatives.
The Justice Department defended the administration’s position, citing a recent U.S. Supreme Court decision supporting Trump’s authority to cut teacher training grants as part of efforts to roll back diversity and equity programs. However, the court’s stance on jurisdiction in this case remains a point of legal contention.
This ruling marks a significant setback to Trump’s broader effort to redirect federal spending and reshape climate and infrastructure policies.
