Federal Judge Blocks Trump’s Order to Dismantle 3 Federal Agencies

The temporary block hands a win to 21 Democratic-led states who filed the lawsuit.

a U.S. flag and a judge's gavel, in this illustration taken on Aug. 6, 2024. Dado Ruvic/Reuters

A federal judge in Rhode Island temporarily blocked President Donald Trump’s executive order to dismantle three small federal agencies, in response to a lawsuit brought by 21 Democrat-led states.

In March, Trump issued an executive order to eliminate the Federal Mediation and Conciliation Service (FMCS), the Minority Business Development Agency (MBDA), and the Institute of Museum and Library Services (IMLS) “to the maximum extent consistent with applicable law.” Four other smaller agencies were also targeted under the order, but the judge did not issue a ruling on those.

U.S. District Judge John McConnell Jr., in a Tuesday order, issued a temporary injunction against the dismantling of the three agencies, saying it violated the Administrative Procedure Act. The order, the judge wrote, also violated the Constitution’s separation of powers clause and argued that Congress appropriated the funds for those federal entities that Trump is seeking to shut down.

The executive order “disregards the fundamental constitutional role of each of the branches of our federal government; specifically, it ignores the unshakable principles that Congress makes the law and appropriates funds, and the Executive implements the law Congress enacted and spends the funds Congress appropriated,” McConnell wrote.

In his ruling, the federal judge rejected the Trump administration’s arguments that the states did not have standing, or the legal doctrine that establishes whether a party can file a lawsuit, to file the court challenge.

“The States have presented compelling evidence illustrating that the harms stemming from the dismantling of IMLS, MBDA, and FMCS are already unfolding or are certain to occur, in light the significant reduction in personnel available and competent to administer these agencies’ funds and services and the elimination of certain programs that served the States,” McConnell wrote in the 49-page order.

However, McConnell did not order the agencies to take any specific steps. The judge told the states to consult with the Trump administration and submit a more detailed order for his approval.

Rhode Island Attorney General Peter Neronha, a Democrat whose office is leading the lawsuit, called the decision a “critical win” for the American public.

“When the Trump Administration attempts to dismantle these agencies, it is making a targeted, concerted effort to prohibit everyday people from accessing their full potential,” Neronha said in a statement on Tuesday.

He said administration officials “know that these agencies represent opportunities for the American people to better themselves through free access to knowledge through their local public libraries, to protect their labor and employment rights, and to help their small businesses grow.”

Administration officials, in response to the states’ lawsuit, said in court papers filed on April 14 that the states could not “show a likelihood of success on their claims” and also argued that their request for the judge to issue a preliminary injunction is “exceptional” given the circumstances.

Its lawyers further said in the filing that the U.S. District Court for the District of Rhode Island isn’t the appropriate venue to solve the dispute.

“Congress did not directly appropriate funds to the states; it authorized the Defendant agencies to issue grants,” the administration argued. “Those grants are contracts, and suits challenging their termination—and Plaintiffs’ demand that the government keep paying funds out from these terminated grants—belong in the Court of Federal Claims.”

Trump’s executive order was part of his broader effort to dramatically shrink the federal government and slash government spending. Tens of thousands of federal workers have been fired, placed on leave indefinitely, or accepted buyouts to leave their jobs.

The president has said that his efforts are also designed to reduce fraud, waste, and abuse in the government and remove spending in programs that promote progressive policies that he says are squandering taxpayer funds.

Reuters contributed to this report.