The Trump administration has openly expressed its opposition to distributing funds authorized by Congress under the Inflation Reduction Act and the Bipartisan Infrastructure Law. However, on Tuesday, a federal judge issued an order mandating that the agencies resume the funding processes.
Federal agencies under President Donald Trump have utilized his executive orders to justify withholding grants and contracts that Congress authorized, many of which had already been awarded. U.S. District Judge Mary McElroy, appointed by Trump during his first term, stated that the administration’s actions were “neither reasonable nor reasonably explained.”
Judge McElroy noted that the extensive powers claimed by the Office of Management and Budget, the National Economic Council Director, and the involved agencies were not supported by federal law. Besides these offices, five federal agencies face lawsuits from various plaintiffs. The Environmental Protection Agency (EPA), for instance, is being sued by the Childhood Lead Action Project, which had received $500,000 for combating childhood lead poisoning in Rhode Island. The other agencies involved are Agriculture, Energy, Housing and Urban Development, and Interior.
This case is distinct from a separate one where the Trump administration instructed Citibank to freeze hundreds of millions of dollars in funds already held in nonprofit accounts. In the latter case, a federal judge determined that the Trump administration, particularly the EPA, acted in an “arbitrary and capricious” way when canceling contracts with three nonprofits. A temporary restraining order was issued, requiring the EPA and Citibank to allow the nonprofits to access their funds.
Judge McElroy recognized the Trump administration’s right to direct the country in a particular way but pointed out that there are limits to these powers. She emphasized that while elections result in policy shifts, the judiciary is not responsible for assessing the soundness of those policies. Instead, the judiciary’s role is to ensure the legality of the procedures the government employs in implementing policies.
Numerous companies and nonprofits have filed court objections against the Trump administration’s attempts to influence executive branch departments and agencies to counteract legislation enacted under the previous administration. Judge McElroy sided with the plaintiffs, stating that agencies do not possess unlimited authority to advance a President’s agenda, nor do they have the unrestricted power to undermine statutes passed by Congress.
