Trump Is Still Holding Up FEMA Funds, Despite Court Order

In case you missed it: The Federal Emergency Management Agency has continued to withhold millions of dollars from states for disaster recovery, relief, and preparedness despite a district court’s order from March 6 calling on the administration to release the funds.

Among the more than 200 FEMA grants to states that remain frozen are a case management program for survivors of the 2023 Maui wildfires, emergency readiness projects in Oregon, and flood hazard mitigation in Colorado, according to a motion filed on Monday in the lawsuit State of New York v. Trump.

The motion was filed the day after Homeland Security Secretary Kristi Noem said her department would move to “eliminate” FEMA during a cabinet meeting.

Twenty-two states plus the District of Columbia filed the suit in the U.S. District Court for the District of Rhode Island in late January, after President Trump’s Office of Management and Budget issued a directive to federal agency heads to conduct a review of funding related to “foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,” and to pause disbursement of any related funds in the meantime. The states argued that the memo and the executive orders it cites were unconstitutional.

The states sought an injunction on the pause, which Chief Judge John McConnell Jr., a Biden appointee, granted in early March. “The Executive’s categorical freeze of appropriated and obligated funds fundamentally undermines the distinct constitutional roles of each branch of our government,” he wrote in the ruling. “Here, the Executive put 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 Trump administration filed notice with the U.S. First Circuit Court of Appeals in Boston that it is appealing the injunction a few days after it was issued.

Prior to the injunction order, the states had identified the disruptions from the pause on FEMA funds as being “particularly acute and widespread.” So as part of the injunction, the Judge directed FEMA to file a status report by March 14 detailing its compliance. But rather than detailing the release of grants previously held hostage, the status report federal lawyers filed on March 14 argued that the agency had “inherent authority” to conduct a “manual review” of the grants, and therefore it is not violating the court’s injunction by continuing to review — and therefore withhold — previously obligated funds.

“This manual review process is not a ‘pause’ or ‘freeze’ on funding,” the status report says, “nor does it mean that the grant is being frozen, held, or not being distributed.”

On Monday, states filed a motion calling BS on this argument and requesting that the court use its authority to enforce the injunction. This was urgent, they argued, because as the end of the first quarter nears, the lack of access to funding is going to start disrupting crucial programs.

If Hawaii doesn’t start receiving reimbursements for its federally-funded case management program by March 31, for example, it will be forced to immediately discontinue its work helping more than 4,000 wildfire survivors create tailored disaster recovery plans and navigate recovery resources. The state used to have to wait approximately a week for FEMA to review reimbursement requests and transfer the funds. Now it’s been waiting nearly 30 days. “This abrupt change in practice is near fatal because a key requirement of FEMA regarding these grant funds is that Hawaiʻi is precluded from maintaining more than three business days’ worth of cash on hand,” the states’ filing says.

FEMA is still issuing funds for some activities. The agency approved Fire Management Assistance Grants for North and South Carolina this week, where several major wildfires have been burning for weeks.

While the Trump administration fights the injunction in court, its supporters in Congress are fighting it on the floor. House Representative Andrew Clyde of Georgia introduced articles of impeachment against Judge McConnell on Tuesday, the latest in a series of such moves to impeach federal judges that have ruled against Trump’s actions. This is despite a warning from the Supreme Court’s Chief Justice, John Roberts, last week in a rare public statement, that “impeachment is not an appropriate response to disagreement concerning a judicial decision.”