- Details
- By Brian Edwards
- Policy and Law
A federal judge in Washington, D.C. granted a temporary restraining order Monday blocking the Office of Management and Budget from pausing federal financial assistance programs, including critical funding for tribal nations and Native-serving nonprofits Indian Country.
In a court order, U.S. District Judge Loren L. Alikhan wrote that OMB's Jan. 27 memo ordering federal agencies to freeze disbursements was likely "arbitrary and capricious" and would cause irreparable harm to grant recipients. The ruling comes after a temporary restraining order last Friday from a Rhode Island federal court protecting funding in 22 Democratic-led states and D.C., though questions remained about its application to tribal nations and organizations in other states.
In yesterday’s order, Judge Alikhan noted that granting another TRO was necessary to provide comprehensive protection for recipients potentially not covered by the earlier order.
The court actions come amid mounting concerns from tribal leaders about the potential misclassification of Native programs under recent executive orders targeting diversity and environmental initiatives. In a Feb. 2 letter to the Trump administration and congressional leaders, a coalition of tribal organizations emphasized that federal Indian programs stem from sovereign political relationships, not racial preferences.
"Federal tribal programs are not racial or preference programs, and indeed these federal funds and programs are legally mandated under the trust and treaty obligations owed to us," the organizations wrote.
The funding uncertainty for tribes extends beyond direct federal assistance. The Alliance for Indigenous Prosperity (AIP) launched last week to defend the Small Business Administration's 8(a) Program, which provides crucial contracting opportunities for tribally-owned businesses. The coalition formed in response to legislative proposals in both chambers of Congress that would eliminate these contracting set-asides under the guise of "ending racism in federal contracting."
"The SBA 8(a) Program is not just a tool for federal contracting—it is a lifeline for economic sovereignty, innovation, and growth for indigenous enterprises," Kevin J. Allis, president of Thunderbird Strategic and a key AIP leader, said in a statement.
Both court orders come as agencies grapple with mixed signals from the administration. While OMB Acting Director Matthew J. Vaeth rescinded the controversial memo on January 29, White House Press Secretary Karoline Leavitt insisted the underlying executive orders targeting diversity and environmental programs "remain in full force and effect."
Judge Alikhan's ruling requires OMB to notify agencies they cannot implement the funding freeze and mandates a status report on compliance by February 7. The parties must also propose a schedule for preliminary injunction proceedings, which could determine longer-term protections for tribal and other federal funding recipients.
