The U.S. Department of Justice has mandated the reinstatement of federal funding that was previously frozen following an Office of Management and Budget (OMB) memo issued earlier this week.
The OMB memo, which directed a blanket freeze on federal funding, has now been overridden by a court ruling and the Justice Department’s directive, which ensures that federal agencies cannot block or restrict funding for sums owed or awarded.
This latest development comes on the heels of a Delaware district court’s temporary restraining order, which responded to the OMB’s controversial memorandum seeking to impose a federal budgetary freeze.
The freeze was linked to compliance with several recent executive orders issued by President Trump, which aimed to restructure federal agencies and implement significant political and financial reforms. These executive orders included proposals to eliminate references to critical race theory, ban “gender theory,” freeze federal hiring, weaken protections for federal employees, and other sweeping changes to federal operations.
In its ruling, the Justice Department clarified that while agencies may still pause grants or withhold payments in specific situations, such decisions must be made using their discretionary powers and not as a direct result of the OMB memo.
This decision has prompted significant legal challenges, as various states and non-profit organizations have filed a class action lawsuit, arguing that the OMB memo violated procedural statutes, the separation of powers, and the Constitution.
The plaintiffs in the class action contend that the OMB memo was “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law,” in violation of the Administrative Procedure Act (APA).
They also argue that the memo infringed upon the constitutional powers granted to Congress under the Spending Clause and other legislative powers, particularly by interfering with Congress’s authority to control federal spending.
Despite the court order lifting the freeze, White House Press Secretary Karoline Leavitt took to X (formerly Twitter) to emphasize that President Trump’s executive orders on federal funding remain fully intact. \
“The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented,” Leavitt stated.
As the legal battle continues, the Justice Department’s order serves as a critical moment in the ongoing debate over the balance of power between the executive branch and Congress, particularly concerning federal budgetary control.
The resolution of the case could have significant implications for future executive actions and federal funding processes.
