Federal judge again orders release of funding withheld from Colorado, other states

A federal judge ordered the Trump administration Thursday to unfreeze federal money that has remained withheld from Colorado and other states despite previous court rulings requiring the funding be released.

U.S. District Court Judge John McConnell in Rhode Island granted a preliminary injunction in a lawsuit filed by Colorado and nearly two dozen other states led by Democratic officials. It comes more than a month after the plan by President Donald Trump’s administration for a sweeping pause on federal spending stirred up a wave of confusion and anxiety across the United States.

“The executive’s categorical freeze of appropriated and obligated funds fundamentally undermines the distinct constitutional roles of each branch of our government,” McConnell wrote in the order. “… Here, the executive puts itself above Congress. It imposed a categorical mandate on the spending of congressionally appropriated and obligated funds without regard to Congress’s authority to control spending.”

The still-frozen funding included nearly $45 million in public safety funds destined for Colorado, state officials said earlier this week. That money was set to be distributed from the Federal Emergency Management Agency.

In his order, McConnell told the agency that it must file a status report by March 14 to update him on its progress disbursing the funds.

Another $35 million from a weatherization assistance program — awarded to Colorado under the Infrastructure Investment and Jobs Act signed by former President Joe Biden — also remained frozen. That money was supposed to go to the Colorado Energy Office, which said last month that $570 million in federal funding bound for Colorado was still locked, despite a judge ordering its release.

“Unilateral cuts to everything from lifesaving health care to resources for firefighters would be devastating for our state, and I will continue to do everything in my power to stop these reckless, illegal acts,” Colorado Attorney General Phil Weiser said in a statement Thursday. “As evidenced by this ruling, the law is on our side.”

The White House has said the temporary funding halt would ensure that the payments complied with Trump’s agenda, which includes increasing fossil fuel production, removing protections for transgender people, and ending diversity, equity and inclusion efforts.

But among the funding awards impacted is billions of dollars that would pay for rooftop solar power in low-income neighborhoods, subsidize low- and moderate-income households’ purchase and installation of electric heat pump water heaters, and cover grants to reduce greenhouse gas emissions and other harmful pollutants.