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Judge bars Trump administration from shrinking agencies that fund libraries, settle labor disputes

May 6, 2025, 11:52 AM | Updated: 3:10 pm

President Donald Trump speaks during a meeting with Canadian Prime Minister Mark Carney in the Oval...

President Donald Trump speaks during a meeting with Canadian Prime Minister Mark Carney in the Oval Office of the White House, Tuesday, May 6, 2025, in Washington. (AP Photo/Evan Vucci)
Credit: ASSOCIATED PRESS

(AP Photo/Evan Vucci)

A federal judge has temporarily barred President Donald Trump’s administration from dramatically shrinking three agencies that fund libraries across the U.S., settle labor disputes with public sector workers, and support state business contracting programs.

U.S. District Judge John McConnell, Jr. in Rhode Island said Trump can’t unilaterally end the funding and programs for the Institute of Museum and Library Services, the Minority Business Development Agency and the Federal Mediation and Conciliation Service. All three agencies were established by Congress.

Trump’s March 14 directing the agencies to cut as many staffers and programs as legally possible was “arbitrary and capricious,” McConnell wrote in Tuesday’s order.

鈥淚t also 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.鈥

Twenty-one states sued over the executive order, which directed the agencies to eliminate every program that isn’t mandated by law and to cut staffers and all other functions to the bare minimum allowed by statute. The states said the 鈥渟hredding鈥 of the agencies puts hundreds of millions of dollars of grant funding at risk and hurts the general public. Threatened programs include a braille library in Washington, a literacy program in California, and a program supporting veterans in Rhode Island, according to the lawsuit.

But attorneys for the government told the judge that the lawsuit is too broad, in part because some of the states are contending that specific grants have been terminated but others are simply anticipating future increased costs or that some grants may not be renewed.

In some cases, U.S. Department of Justice attorneys wrote in court filings, the various grant recipients haven’t even requested payment of the grants yet. Disputes over personnel claims, like employee terminations or reductions in force, must first be litigated before other entities before they can be brought to federal court, the attorneys wrote, suggesting the states were trying to “jump the line.鈥

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Judge bars Trump administration from shrinking agencies that fund libraries, settle labor disputes