Court Upholds Order: Trump Administration Must Release Federal Funds

A federal appeals court upheld a judge's order for the Trump administration to release federal grants and loans. The funding was halted, prompting a legal challenge from multiple states. The appellate court expects swift action to clarify the order, despite arguments of judicial overreach by the Justice Department.

A federal appeals court on Tuesday upheld a judge's mandate requiring the Trump administration to release billions of dollars in federal grants and loans. Despite a court's earlier intervention, states reported the funds remain inaccessible. The 1st US Circuit Court of Appeals, based in Boston, rejected the emergency appeal and urged swift clarification from the lower court judge.

The dispute stems from the Trump administration's attempt to freeze all federal grants and loans through a broad memo, prompting nearly two dozen states to file a lawsuit. U.S. District Court Judge John McConnell of Rhode Island ruled against the administration, citing its disobedience of a court order.

While the controversial memo has since been withdrawn, Judge McConnell noted on Monday that the restoration of all federal grants and loans is still incomplete. This development continues to create upheaval nationwide. The Justice Department criticized the initial ruling, describing it as judicial overreach.

(With inputs from agencies.)