A federal judge chosen by President Donald Trump has ruled that the White House wrongly held back tens of millions of dollars meant for the National Endowment for Democracy (NED).
The White House was asked for a comment but did not respond by Monday.
Why This Matters
This case raises important questions about how much control Congress has over the budget and whether the President’s office can stop spending money that Congress has already approved.
NED is a group that promotes democracy and was one of several organizations targeted by the Trump administration and Elon Musk, who was leading the Department of Government Efficiency at the time. Other groups like the U.S. Agency for International Development and the U.S. Institute for Peace also had their funding cut because of unproven claims of corruption.
What Happened
In March, NED sued the Trump administration for illegally withholding the funds, breaking a law called the Administrative Procedure Act. NED said this freeze caused a serious money shortage, forcing them to lay off 75% of their staff and stop important programs that support pro-democracy efforts worldwide.
NED first asked the court to temporarily stop the government from withholding money, then asked for a longer order to make sure the rest of the funding for 2025 would be released.
U.S. District Judge Dabney Friedrich, who was appointed by Trump in 2017, agreed on Monday to stop the government from withholding the funds.
What the Judge Said
Judge Friedrich said it looks like the government illegally froze NED’s funding. She explained that Congress decides how much money NED gets and what it’s used for, while NED’s board makes sure the money is spent properly.
The executive branch (the President’s office) is supposed to give the money to NED. But evidence showed that the Trump administration stopped the money for reasons that were not allowed — basically for political reasons.
The judge pointed out that because of the funding freeze, NED couldn’t pay for 226 approved grants, 124 grants waiting for approval, and 53 key projects. These activities help monitor elections, support democracy activists, and maintain independent news and information.
The government argued it stopped the funds to protect the future budget, but the judge rejected this, saying the government blocked access to money that was already set aside and delayed payments.
The judge made clear the government cannot hold back money just because NED’s projects don’t match the administration’s priorities. Holding back $95 million for “review” like this breaks the law.
What People Are Saying
Peter Roskam, former GOP congressman and NED chair, said, “We hope this was just a mistake, but clearly it wasn’t.”
Elon Musk criticized NED on social media, calling it “rife with corruption.”
What’s Next
The Trump administration has not commented on the ruling yet, but they will likely appeal, as they have done in other court cases.
