On Tuesday, U.S. District Judge Mary McElroy in Providence, Rhode Island, stopped the Trump administration from freezing key climate and infrastructure grants. These funds had already been approved under laws passed during President Biden’s term. Environmental groups led by Democracy Forward filed the lawsuit, arguing the freeze was illegal. The judge agreed, saying federal agencies don’t have the power to ignore laws made by Congress.
Judge Says Agencies Can’t Override Congress
Judge McElroy ruled that federal agencies cannot stop funding projects that were approved by Congress. She said agencies are not allowed to follow a president’s agenda if it breaks the law.
“Agencies do not have unlimited authority to further a President’s agenda,” McElroy wrote. “Nor do they have unfettered power to hamstring in perpetuity two statutes passed by Congress.”
The court’s decision came after several groups challenged the freeze. These groups include the Woonasquatucket River Watershed Council, the Eastern Rhode Island Conservation District, the National Council of Nonprofits, and the Green Infrastructure Center.
Lawsuit Targets Executive Order on Day One
On his first day back in office, former President Donald Trump signed an executive order. It told federal agencies to pause grants funded under two major laws:
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The Infrastructure Investment and Jobs Act of 2021
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The Inflation Reduction Act of 2022
The goal of the pause was to review if the grants aligned with Trump’s policy priorities.
After the order, the following agencies paused funding:
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Environmental Protection Agency (EPA)
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Department of Agriculture
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Department of Energy
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Department of the Interior
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Department of Housing and Urban Development
These grants were meant to support local projects. They focused on cutting pollution, fighting climate change, and improving infrastructure in many U.S. communities.
Groups Say Freeze Harms Public Health and Economy
The legal challenge was led by the nonprofit Democracy Forward, which helps communities fight executive overreach.
“By blocking these investments in local communities and projects, the administration is jeopardizing public health initiatives, environmental protections, and economic stability,” said Skye Perryman, President and CEO of Democracy Forward.
The lawsuit said the freeze ignored earlier rulings from another judge in Rhode Island. That judge had already stopped the Trump administration from enforcing a wider pause on $3 trillion in federal grants and aid.
Trump Administration Defends Pause
The Trump administration defended the decision to stop the funds temporarily. It claimed agencies needed time to review where the money was going. Officials argued the review could help align spending with new policies.
The U.S. Department of Justice also said the case should not be heard in Rhode Island, suggesting the court lacked authority.
Supreme Court Decision Fuels Debate
The Justice Department pointed to a recent decision by the U.S. Supreme Court to support its case. On April 4, the court voted 5-4 to let the Trump administration cancel teacher training grants. These programs were linked to diversity, equity, and inclusion (DEI) initiatives that the administration wants to cut.
Supporters of the grant pause said the Supreme Court ruling gives Trump legal cover to stop similar funding.
However, Judge McElroy’s ruling makes it clear that not all grants can be blocked without legal consequences—especially when Congress already approved them.
What Happens Next?
The federal agencies named in the case—EPA, Energy, Agriculture, Interior, and HUD—did not respond to media requests for comment.
Meanwhile, legal experts expect the case to go to a higher court. But for now, the freeze on climate and infrastructure grants is over.
Communities that rely on this money may soon be able to move forward with their planned projects.
