The Trump administration’s plans to shutter four small agencies are indefinitely on hold, following a court’s recent ruling.
A federal judge in Rhode Island issued a permanent injunction on Nov. 21, blocking the administration from taking any further action to eliminate the Institute of Museum and Library Services, the Minority Business and Development Agency, the Federal Mediation and Conciliation Service, and the Interagency Council on Homelessness.
President Donald Trump signed an executive order in March, eliminating these agencies — and three others — “to the maximum extent consistent with applicable law.” But attorneys general in 21 states sued the administration, arguing that these agency closures would have downstream effects on state-level operations.
The permanent injunction ordered by U.S. District Court Judge John J. McConnell, Jr. prevents the four agencies from “taking any future action to implement, give effect to, comply with, or carry out the directives contained in the Reduction EO.”
]]>
McConnell determined that the Trump administration’s decision to conduct widespread layoffs, terminate grants and eliminate programs at these agencies “undermined their ability to perform functions mandated by statute.”
“By now, the question presented in this case is a familiar one: may the executive branch undertake such actions in circumvention of the will of the legislative branch? In recent months, this court — along with other courts across the country — has concluded that it may not. That answer remains the same here,” he wrote.
The agencies targeted for elimination are responsible for funding museums and libraries, mediating labor disputes, supporting minority-owned businesses, and preventing and ending homelessness.
Over the course of several months, the Trump administration fired, placed on administrative leave, or reassigned nearly all employees in these four agencies. The administration cancelled a wide range of grants to the agencies, and cancelled public programs and services that the agencies provided.
McConnell said these decisions left the agencies unable to carry out their statutorily mandated functions, and unable to spend their congressionally appropriated funds.
The court issued a preliminary injunction in May. The Trump administration appealed the district court’s preliminary injunction, but dropped its appeal on Nov. 21, following the judge’s permanent injunction. Federal News Network has reached out to the White House and the Justice Department for comment.
The Supreme Court and federal appeals courts have mostly allowed the Trump administration to proceed with plans to shutter agencies and conduct mass layoffs across the federal workforce.
]]>
The Trump administration argued that a preliminary injunction in this case prevented agencies from implementing the president’s priorities. McConnell, however, said he ruled in favor of the states, given a “plethora of injuries” that would arise, if the court did not intervene.
States told the court that closing IMLS would force the closure of public libraries, force them to implement hiring freezes and stop providing services that support literacy and learning. State universities said they would be forced to lay off employees, eliminate student programming and default on contracts without continued funding for MBDA.
In other cases, states said some of their agencies and programs are at risk of work stoppages and negotiation impasses, without FMCS around to resolve labor disputes. States also told the court they would lose expert assistance on how to reduce homelessness without the Interagency Council on Homelessness.
“All this to say: the injuries alleged are to the States themselves and are far more than merely economic or speculative,” McConnell wrote.
New York State Attorney General Letitia James called the ruling a “major victory in our ongoing work to defend important services.”
“The federal government’s illegal attack on these agencies threatened vital resources for workers, small businesses, and the most vulnerable in our communities,” James said.
The American Library Association said the court’s decision “restores everything that the executive order tried to take away.”
“Convincing a federal judge that shuttering a supposedly obscure agency would have an immediate and devastating impact on millions of Americans is no small feat,” ALA President Sam Helmick said. “Libraries also strengthen local economies by supporting jobseekers, small businesses and community learning. Protecting these resources matters.”
]]>
If you would like to contact this reporter about recent changes in the federal government, please email jheckman@federalnewsnetwork.com, or reach out on Signal at jheckman.29
Copyright
© 2025 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.
