Trump reignites legal fight over freezing billions in federal funding
Aaron Schwartz/Sipa/Bloomberg via Getty Images
(WASHINGTON) — The Trump administration is reigniting a legal fight over whether it can unilaterally freeze billions of dollars in funding in loans, grants and financial assistance.
Lawyers with the Department of Justice asked the Boston-based 1st U.S. Circuit Court of Appeals to stay a decision by a federal judge in Rhode Island who determined that the Trump administration likely violated the Constitution when it tried to block trillions in federal funding through a now-rescinded directive of the Office of Management and Budget.
That Rhode Island judge on Monday issued an order finding that the Trump administration, in its effort to “root out fraud,” was still cutting off funding in defiance of the court order. DOJ lawyers are now arguing that the district court is overstepping its ability to rein in the power of the president.
“This appeal arises from an extraordinary and unprecedented assertion of power by a single district court judge to superintend and control the Executive Branch’s spending of federal funds, in clear violation of the Constitution’s separation of powers,” they wrote in an emergency application to the 1st Circuit.
DOJ attorneys argued the court’s decision effectively requires the federal government to get “preclearance” from the district court for any decision relating to funding.
“It is self-evidently unworkable for the defendant agencies to be required to seek targeted relief from the district court every time they wish to withhold funds based on their own authorities,” they said in the filing.
Lawyers representing the 23 state attorneys general are aggressively pushing back on the appeal, arguing that allowing the funding freeze will irreparably harm millions of people who rely on federal money.
“This case challenges defendants’ implementation of a policy imposing across-the-board blanket freezes on payments to all recipients of federal funding associated with nearly all federal programs across the Nation, ranging from (for example) healthcare funding to education funding to critical energy and infrastructure grants — a policy that had severe and destabilizing consequences for Plaintiff States and their residents,” they said in the lawsuit.
The attorneys general also argued it is procedurally improper for the Trump administration to appeal a temporary restraining order, which generally can’t be stayed.
“If the Court were to issue an administrative stay, defendants would immediately be free to resume this sweeping and illegal policy, harming Plaintiff States and the many recipients of federal funding that reside within their jurisdictions,” they said.
The Trump administration is asking for an immediate administrative pause as well as a stay pending appeal by Friday.
(WASHINGTON) — President Donald Trump on Wednesday said he spoke with Russian President Vladimir Putin about ending the war in Ukraine, which started three years ago when Putin’s forces launched a full-scale invasion.
“I just had a lengthy and highly productive phone call with President Vladimir Putin of Russia,” Trump wrote in a lengthy post on his conservative social media platform. “We discussed Ukraine, the Middle East, Energy, Artificial Intelligence, the power of the Dollar, and various other subjects.”
On Ukraine, Trump said he and Putin “agreed to work together, very closely, including visiting each other’s Nations.”
“We have also agreed to have our respective teams start negotiations immediately, and we will begin by calling President Zelenskyy, of Ukraine, to inform him of the conversation, something which I will be doing right now,” Trump said. A source confirmed to ABC News that Trump and Zelenskyy were speaking by phone.
Trump added, “President Putin even used my very strong Campaign motto of, “COMMON SENSE.” We both believe very strongly in it.”
The discussion between Trump and Putin lasted an hour and a half, according to Kremlin spokesman Dmitry Peskov.
“President Trump spoke in favor of an early end to hostilities and a peaceful solution to the problem. President Putin, for his part, mentioned the need to eliminate the root causes of the conflict and agreed with Trump that a long-term settlement can be achieved through peaceful negotiations,” Peskov told reporters.
Ukraine’s Zelenskyy has demanded full territorial liberation, and earlier this week signaled a willingness to swap territory with Russia.
U.S. Defense Secretary Pete Hegseth said earlier Wednesday that a return to Ukraine’s pre-war borders is an “unrealistic objective” in peace talks, as was NATO membership for Ukraine.
The comments were made at his first meeting of the Ukraine Defense Contact Group, a coalition of countries working to support Kyiv, in Brussels.
“President Trump has been clear with the American people — and with many of your leaders — that stopping the fighting and reaching an enduring peace is a top priority,” Hegseth told leaders.
Trump has long maintained, and repeated in his post Wednesday, that the war in Ukraine would never have happened had he been president.
He also thanked Putin for the release of Marc Fogel, an American teacher who had been serving a 14-year prison sentence in Russia after being arrested on drug charges in 2021. Fogel arrived at the White House late Tuesday night.
ABC News’ Ellie Kaufman contributed to this report.
(WASHINGTON) — Pete Marocco, the Trump administration official tasked with the dismantling of the U.S. Agency for International Development (USAID), at a private “listening session” held at the State Department earlier this month with dozens of aid groups — some on the brink of financial collapse — opened the proceedings by making one request: that everyone stand for the Pledge of Allegiance.
Inside the Loy Henderson Conference Room, representatives from aid organizations, industry groups, and foreign embassies — reeling from the administration’s sweeping freeze on foreign aid and the unraveling of USAID — dutifully rose to their feet.
The aid groups were there in the hope that Marocco would provide answers on the future of foreign assistance. After the Pledge, Marocco outlined the Trump administration’s foreign aid plans, defending what he called a “total zero-based review,” and arguing that some areas of foreign aid required “radical change” before taking questions from those in attendance, according to an audio recording of the private meeting obtained by ABC News.
‘Nefarious actors in the agencies’
Multiple sources who attended the Feb. 13 meeting described the mood in the room as “deeply uncomfortable,” saying that some of the attendees who were representing groups teetering on bankruptcy were left “traumatized” by the tone and the lack of specific details.
During the discussion, a representative for World Vision, a global Christian humanitarian organization, asked Marocco about the impact of the freeze, noting that aid groups like his had been forced to bankroll U.S. government-funded programs with private money while awaiting overdue payments to be unpaused.
“Will the spigot open? We’ve gotten waivers, but the PMS system isn’t operating, so we’re bankrolling U.S. government-funded programs out of private money,” said Edward Brown, the vice president of World Vision, which provides poverty alleviation, disaster relief, and child welfare in nearly 100 countries.
Marocco responded that following President Donald Trump’s executive order halting foreign aid, some transactions were still being processed, prompting his team to “seize control” of the payment system to stop them — leaving some groups without payments that, weeks later, had still had not arrived.
“As far as payment, one of the reasons that there have been problems with some of the payments is because, despite the president’s executive order, despite the secretary’s guidance, we still had nefarious actors in the agencies that were trying to push out hundreds of illegal payments,” Marocco said. “And so we were able to seize control of that, stop them, take control of some of those people, and make sure that that money was not getting out the door.”
Marocco suggested that payments for organizations with existing contracts would resume the following Tuesday.
“I feel confident we’re going to have that pretty good by Tuesday of next week,” he said. “That does not mean everybody’s going to be caught up on everything that they want. But I think that our payment system will probably be fluid at that point.”
But Tuesday came and went, and many groups say they were still on the edge of bankruptcy — prompting some to escalate their legal battle against the administration.
On Monday, several USAID officials told ABC News that the payment system Marocco said would be fully restored was now technically operational, but that funding was still moving at an extremely slow pace and that many of the programs that were granted waivers to continue operations had still not received any money.
USAID officials said the lack of funding has rendered many of the exempted programs inoperative. Some have resorted to using stockpiled resources, but because these programs have been cut off from federal support for weeks, most report that they have few funds left and don’t anticipate they will be able to function for much longer, according to the officials.
On Friday, after a federal judge cleared the way for the administration to proceed with its plan to pull thousands of USAID staffers off the job in the U.S. and around the world, the Trump administration moved forward with its effort to dismantle USAID, telling all but a fraction of staffers worldwide that they were on leave as of Monday.
In a court-ordered affidavit filed last Tuesday, Marocco wrote that the agency “has authorized at least 21 payments” for grants, loans, and other foreign aid executed before Trump’s inauguration “that are in total worth more than $250 million and are expected to be paid this week.”
As of Monday, it was not clear whether those payments had been made.
When reached for comment, World Vision would not confirm to ABC News if payments had resumed, but told ABC News they were “complying with the executive order that pauses U.S. foreign assistance funding — with potential waivers for emergency food and lifesaving humanitarian assistance — for the next 90 days, while programs are reviewed for alignment with the current administration’s foreign policy.”
‘What we consider to be legitimate’
In one tense moment during the listening session, a senior Democratic Senate staffer pressed Marocco on whether, once the payments resumed, they would include reimbursements for work incurred before the Jan. 24 freeze.
“When payments resume, will they include work incurred before Jan. 24 in the payments forthcoming on Tuesday?” asked the staffer, who, when reached for comment by ABC News, asked not to be named our of fear of retribution.
Marocco would not guarantee that government-contracted work that occurred before the freeze would be reimbursed, stating that the Trump administration would only cover “legitimate expenses” — and noting that the administration’s definition of a legitimate expense may differ from the groups in the room.
“We will be looking at those,” Marocco said. “What we consider to be legitimate may not be the same thing that other people consider to be legitimate, but we’re going to.”
The staffer attempted to follow up, arguing that if the work had been incurred before the freeze, “it was legitimate at the time, right?”
“We’ve moved on to the next person,” Marocco responded.
In his affidavit filed on Tuesday, Marocco conveyed the scope and status of the government’s aid freeze. He wrote that, since Trump signed the executive order for a 90-day freeze, USAID had terminated nearly 500 grants and contracts. He said the agency “has not quantified” the total cost of those programs.
As of Tuesday, the State Department had terminated more than 750 foreign assistance-funded grants and contracts of its own and had suspended nearly 7,000 more, Marocco wrote.
A ‘cycle of dependency’
Marocco used the meeting with the organizations to paint a dire picture of U.S. foreign aid, claiming it had “devolved into a fiscal cycle of dependency, of presumption, arrogance, and frankly, folly, that is just astonishing.” He dismissed past reform efforts as ineffective, arguing that officials had merely “nibbled around the edges” rather than addressing what he saw as systemic failures.
He insisted the review was necessary to force difficult conversations about “what these programs are actually doing” and whether they should continue at all. And he framed the overhaul as part of President Trump’s broader effort to reshape Washington’s approach to foreign assistance.
“The American people deserve better. They require better. And President Trump has promised better,” he said, criticizing aid decisions made “behind closed doors in Congress, in small groups in Washington, D.C.”
Marocco told those gathered that the administration’s review extended beyond USAID and would encompass a range of federal agencies, including NASA, the Patent and Trademark Office, the Millennium Challenge Corporation (MCC), and the U.S. Agency for Global Media (USAGM).
“If there is a tax dollar that is going out to a foreigner, we need to gain control of that and understand what it is we’re trying to achieve with our partners,” he said. “We want to identify all of that. We want to fix it. That’s the goal.”
Marocco made clear that the new foreign aid structure would be tied to Trump’s political priorities.
“With the Secretary of State, you will be in line,” Marocco said. “The foreign assistance review, you will follow the president’s foreign policy objectives. Or you will not be spending money abroad.”
He told the aid groups in the room they needed to justify their programs.
“You need to think about convincing someone — perhaps one of the women who is in my mother’s Bible study,” he said. “You need to think about somebody who’s working at a McDonald’s in Mississippi. You need to think about a grad student in Harlem.”
The Trump administration has received widespread condemnation from Democrats in Congress over its effort to slash foreign aid programs. “What Trump and Musk have done is not only wrong, it’s illegal,” Rep. Don Beyer of Virginia said earlier this month during a news conference outside USAID headquarters. “USAID was established by an act of Congress, and it can only be disbanded by an act of Congress. Stopping this will require action by the courts and for Republicans to show up and show courage and stand up for our country.”
‘Catastrophic’ harm
The Feb. 13 meeting came as the legal battle over the aid freeze was escalating. Last week, a coalition of aid groups asked a federal judge to intervene, arguing that the freeze violated existing funding agreements and had caused “catastrophic” harm to their humanitarian missions. U.S. District Judge Amir Ali issued a temporary restraining order halting the freeze, but aid organizations said their funding remained locked, leaving them scrambling to keep operations afloat.
Late Tuesday, Trump administration attorneys filed court papers arguing that their interpretation of the judge’s order allows the freeze to largely remain in place. The aid groups fired back Wednesday, urging the court to enforce the ruling.
“The court should not brook such brazen defiance of the express terms of its order,” they wrote in the filing.
Judge Ali, a Biden-era appointee, wrote Thursday that while Trump administration officials had “not complied” with his order, he would not hold them in contempt of court.
But he warned those officials not to buck what he characterized as his “clear” directive to lift their “blanket freeze” on aid disbursements.
(WASHINGTON) — President Joe Biden on Friday said the Equal Right Amendment should be considered ratified, but is stopping short of taking any action on the matter in his final days in office.
“I have supported the Equal Rights Amendment for more than 50 years, and I have long been clear that no one should be discriminated against based on their sex,” Biden said. “We, as a nation, must affirm and protect women’s full equality once and for all.”
Biden said he agreed with the American Bar Association, which has said the amendment cleared the necessary hurdles to be added to the Constitution after Virginia in 2020 became the 38th state to ratify it even though that was well past the deadline for ratification.
“It is long past time to recognize the will of the American people,” Biden said. “In keeping with my oath and duty to Constitution and country, I affirm what I believe and what three-fourths of the states have ratified: the 28th Amendment is the law of the land, guaranteeing all Americans equal rights and protections under the law regardless of their sex.”
Political debate around the ERA, which was first introduced in 1923, ramped up after the Supreme Court overruled Roe v. Wade in 2022 and again after the 2024 election.
In December, more than than 120 congressional Democrats called on Biden to officially ratify the amendment before ceding power to President-elect Donald Trump.
“Solidifying your legacy on equal rights with a final action on the ERA would be a defining moment for the historic Biden-Harris administration and your presidency,” they said in their letter to Biden.
The move prompted a rare statement from the leaders of the National Archives, who contended the amendment couldn’t be certified without action from Congress or the judicial system because states did not meet the deadline established by Congress for ratification.
Lawmakers had set a seven-year deadline in 1972 for state ratification, though later extended it by an additional three years. Efforts by Democrats in recent years to remove the deadline have failed.
“Court decisions at both the District and Circuit levels have affirmed that the ratification deadlines established by Congress for the ERA are valid,” the archivists wrote. “Therefore, the Archivist of the United States cannot legally publish the Equal Rights Amendment.”
Though Biden renewed his call for the ERA to become law of the land, he is not taking any action on the matter before he departs the White House on Monday, according to a senior administration official.
When pressed by reporters whether any steps would be taken in addition to Biden’s messaging, the official “he is using his power of the presidency to make it clear that he believes and he agrees with leading constitutional scholars,” but said he wasn’t taking any specific action.
When asked why the announcement came now, the official said that Biden has supported the amendment for decades but said that he felt strongly about making this push before he leaves office.
If Biden had taken any action to force ratification, it would have likely resulted in a legal fight, experts said.
“At that point, there would be further litigation,” Wilfred Codrington III, a constitutional law professor at Cardozo Law, previously told ABC News. “But really that would just become a question or a conflict between the president and Congress.”
“If Congress is not doing something to suggest that the amendment is ratified, then that’s kind of where the ball is going to end,” Codrington said. “Congress is ultimately the gatekeeper when it comes to amendments.”
The ERA is unlikely to be a priority in the incoming administration or new Congress, where Republicans control the House and Senate. Republicans have argued in the past that the amendment is unnecessary and duplicative.
“That doesn’t seem to be where the Republicans are going,” Codrington said. “But it is notable that states are also another avenue that advocates can look to.”
Codrington pointed to New York voters approving Proposition 1, a measure akin to the Equal Rights Amendment that also includes safeguards to abortion access, during the 2024 election.
