City staff brief finance committee on federal funding freeze, court rulings and local budget risk

Madison city officials briefed the Finance Committee on March 20 about the status of federal executive orders that paused some grants and awards, recent court challenges that have blocked parts of those orders, and how the actions could affect city programs and the 2025 budget.

Mike Haas, City Attorney, summarized three federal lawsuits: a challenge by a nonprofit association in the U.S. District of Columbia resulting in a preliminary injunction against the administration’s funding freeze; a case filed by several state attorneys general in Rhode Island where a temporary restraining order was issued and a motion to enforce the TRO has been filed; and litigation in Maryland by an association of higher-education diversity officers that led to a preliminary injunction blocking parts of an executive order targeting certain diversity, equity and inclusion (DEI) requirements in grant contracts. Haas said courts have used strong language in blocking parts of the orders but cautioned litigation is ongoing and the…