Judge finds FEMA withholding grants in violation of court order 

A federal judge Friday ordered the Federal Emergency Management Agency (FEMA) to disburse millions of dollars of grants to Democratic-led states, finding the administration’s withholding of the funds breached his previous ruling. 

"FEMA's manual review process violates the Court's preliminary injunction order,” U.S. District Judge John McConnell wrote. 

McConnell, an appointee of former President Obama, has blocked the administration from implementing an across-the-board freeze on federal grants as the states’ lawsuit proceeds and has now twice found the administration wasn't in compliance.

The case began with an Office of Management and Budget (OMB) memo directing the sweeping freeze. Even though it has since been rescinded, the judge’s order prevents the administration from implementing it under any other name. 

Late last month, the attorneys general from Washington, D.C., and 22 states returned to McConnell over concerns that FEMA was instituting a grant review process in violation of his order. The states said they were waiting on a combined tens of millions of dollars in disbursements. 

The Justice Department pushed back, insisting to the judge that FEMA was in compliance. 

“FEMA’s manual review process has nothing to do with the OMB Directive, and is expressly not a pause or freeze on funding — it is instead a change to the manner in which FEMA processes and approves payment requests,” the department wrote in court filings. “FEMA intends to make appropriate payments under the relevant grants, which forecloses Plaintiffs’ allegations of a continued ‘pause’ or ‘freeze.’” 

McConnell disagreed, saying the review "essentially imposes an indefinite categorical pause on payments.”  

He went on to find the review is “covertly” an attempt by the administration to implement President Trump’s executive order that aims to ensure so-called sanctuary cities don’t receive federal funds. 

The Hill has reached out to FEMA for comment.