Attorney General Charity Clark announced on March 16 that the U.S. Court of Appeals for the First Circuit has largely upheld a lower court order blocking an effort by the Trump Administration to freeze trillions of dollars in federal funding to states.
The case concerns a new federal policy that would have withheld essential funding from states, affecting a wide range of public services. The ruling is significant because it preserves access to these funds and prevents disruption to state-provided services.
Clark joined with attorneys general from 22 other states in January 2025 to challenge the policy. In March 2025, she secured a preliminary injunction halting its implementation. According to Clark, “the U.S. Court of Appeals for the First Circuit largely upheld a lower court order blocking the Trump Administration’s illegal effort to categorically freeze trillions of dollars in essential federal funding to states.” She said this decision protects vital resources for communities across Vermont and beyond.
A copy of the court’s order is available on the Vermont Attorney General’s website for those seeking further details about the ruling.
The outcome marks another development in ongoing legal battles over federal-state relations and highlights continued scrutiny over changes in how federal funds are distributed.
