Two hours before Rhode Island Assistant Attorney Sarah Rice made the case to a federal court judge in Providence for an even longer and more wide sweeping block to the Trump administration’s federal funding freeze, the White House budget office rescinded its memo.

Confusion clouded the 30-minute virtual hearing Wednesday afternoon, where the intent behind the White House press conference and accompanying social media posts dominated discussion. While Chief Judge John McConnell Jr. didn’t officially grant the temporary restraining order against the Trump administration, he made clear he was persuaded by the arguments of the 23 Democratic attorneys general who filed the lawsuit in federal court in Rhode Island Tuesday.

McConnell asked the attorneys to submit proposed language covering the length of time and breadth of the proposed restraining order, giving the U.S. Department of Justice (DOJ) attorney representing the federal administration 24 hours to respond before McConnell will issue a ruling.

“I agree with the states,” McConnell said. “What I am continuing to question is how an order would look, what the scope of it would be, how it would be directed and implemented.”

Daniel Schwei, the DOJ attorney representing Trump and federal agency directors named in the lawsuit, had asked McConnell to toss the complaint, arguing in a two-page filing submitted minutes before the hearing that the lawsuit was moot in light of the memo being rescinded.

Rice insisted that while the document itself was no longer on the table, the intent to freeze federal funding  remained, requiring immediate action to protect states who rely on the $1 trillion in federal aid for everything from wildfire fighting to transportation projects and social safety net programs like Medicaid.

“The policy, to sum it up, is freeze first, ask questions later,” Rice said. “That is the source of our harm. We cannot proceed in regular order because we are in some ways fighting a decision that has been purposefully obscured.”

Like the lawsuit filed in D.C. by a group of nonprofit, health care and business groups, the AGs’ complaint leans heavily on constitutional framing, framing the Trump administration’s move as a violation of the 10th Amendment, separation of powers and the “spending clause” — which gives the federal purse strings to Congress, not the executive branch.

Second federal judge seems to be prepared to block Trump spending pause

A federal judge in D.C. issued a temporary administrative stay in response to that lawsuit, preventing the Trump administration from freezing federal grants and aid until at least Feb. 3.

However, the AGs’ complaint goes farther, names not only Trump and acting federal budget director Matt Vaeth, but also other federal cabinet members who oversee federal education, emergency, environmental and health care funding. A temporary restraining order would prevent them from enforcing any type of funding freeze, Rice told McConnell.

McConnell appeared to agree, speaking to the “irreparable harm” a freeze would impose on state governments and in turn, the millions of people who depend on their services. 

Even with the memo rescinded, the Trump administration is “acting with a distinction without a difference,” he said.

“Ms. Rice has convinced me that while the piece of paper may not exist, there’s sufficient evidence that the defendants collectively are acting consistent with that directive, and therefore the argument they have about needing a TRO for various legal rights exists,” McConnell said.

The AGs had not filed their proposed wording for a temporary restraining order as of 6:30 p.m. Wednesday.

There’s always a Rhode Island angle

McConnell began the virtual proceeding by welcoming the attorneys to the “creative capital,” home to “some of the finest restaurants and arts and culture scene known to the country.”

McConnell also highlighted the written testimony of Rhode Island Department of Administration Director Jonathan Womer as particularly compelling because Rhode Island is where McConnell lives. Womer was among the slew of administrators across all 22 states who wrote in support of the temporary restraining order to keep critical state services afloat.

Rhode Island has received more than $5 billion in federal funding as of Jan. 28 — equal to more than one third of the state’s fiscal 2025 budget, Womer wrote in his testimony, submitted Tuesday. 

“Understanding OMB 25-13 has been a difficult undertaking,” Womer wrote. “Under one reading, it appears that all federal funding assistance with few exceptions will be paused for more than a week. Under another reading, only certain categories of funding may be paused. But it is unclear exactly which categories may be affected because OMB 25-13 does not specify categories of funds in an identifiable manner. Planning for such an about-face with less than 24-hours notice is not possible.”

State agencies charged with overseeing federally funded programs were unable to access funds on Tuesday, Womer wrote, including the state Medicaid office, which confirmed after calling the Centers for Medicare and Medicaid Services that the system was temporarily down on Tuesday. CMS did not specify when the pause would be lifted, but told Rhode Island Medicaid leaders not to expect any updates in writing, according to Womer’s testimony.

Other state agencies unable to access the federal payment system for essential programs included the Rhode Island Departments of Health, Labor and Training, Environmental Management and Human Services, according to Womer.

Also heavy on Rhode Island leaders’ minds: the fate of the Washington Bridge rebuild, which hinges on $220 million in federal funding that was already approved under the Biden administration. 

Rhode Island’s congressional delegation in a Jan. 25 letter to Vaeth asked for confirmation that the Washington Bridge grant, along with another $250 million in federal funds for other bridgework along Rhode Island’s Interstate 95 corridor, would be released as expected.

“As of filing, there has been no response to clarify that this money would not be impacted,” the Jan. 28 lawsuit against Trump, Vaeth and other federal agency heads reads.

The Rhode Island Office of the Attorney General was one of six co-leads on the lawsuit. Together, the half dozen Democratic attorneys general chose to file in Rhode Island, Tim Rondeau, a spokesperson for the Rhode Island Attorney General’s office, said in an email. 

“Different states will lead different efforts and lead states may choose different venues for filing: Pretty standard,” Rondeau wrote.

McConnell has been a top player in Rhode Island’s political and legal scene for decades. A Providence native and Brown University graduate, he was appointed as a federal judge by President Barack Obama in 2010 and confirmed in 2011. His confirmation came despite objections by U.S. Senate Republicans who criticized McConnell for his prolific donations to top Democratic political action committees and candidates — including Obama and U.S. Sens. Sheldon Whitehouse and Jack Reed — according to a 2020 investigation by CQ Roll Call. McConnell served as treasurer of the Rhode Island Democratic State Committee for 14 years, starting in the 1990s, and was appointed to represent Rhode Island in the 2008 Electoral College vote, Roll Call reported. 

REGENT, a US startup working on the development of a 12-passenger seaglider, a novel form of wing-in-ground vehicle, has broken ground on its new greenfield production facility in North Kingstown, Rhode Island. 

This 255,000 sq ft factory will house the production of several key components for the seaglider, as well as the vehicle’s final assembly line and the pre-delivery testing facilities. 

The facility, which will become operational in 2026, will employ 300 people additional to REGENT’s current staff of around 100. This figure may rise to up to 750 within a period of 10 years. 

The groundbreaking ceremony was attended by the Governor of Rhode Island, Dan McKee, as well as members of the House of Representatives and the Senate.  

In a statement REGENT explained that it had selected the state of Rhode Island as its base in great part due to the access it provides to a coastal testing environment as well as the local naval construction and composites production ecosystem and qualified staff.  

The startup has also been supported by several economic development programs. The Rhode Island Commerce Department allocated $1 million under the First Wave Closing Fund Act, and the state of Rhode Island has committed another $3 million under the Rebuild Rhode Island Tax Credit Act. If REGENT’s industrial plans materialize according to plan, the company may qualify for an additional $13 million under Rhode Island’s Qualified Jobs Program.  

REGENT’s new factory will produce the 12-seater “Viceroy” Seaglider, which is the smallest of the vehicles being designed by the firm. Regent is also working on a much larger seaglider concept called “Monarch”, which could carry between 80 and 100 passengers. 

As of January 2025, Regent claims to have some $9 billion of pre-orders from several operators and leasing companies from around the world. Due to the hybrid sea-air nature of the wing-in-ground technology, REGENT seagliders have caught the attention of shipping companies, several prominent airlines, including Japana Airlines and Hawaiian Airlines, as well as the US Marine Corps. 

The drawn-out saga of a North Kingstown country club’s quest to ease development restrictions along its shoreline ended abruptly Tuesday when Rhode Island coastal regulators denied the proposal.

The Rhode Island Coastal Resources Management Council’s 6-0 vote came within minutes, without questions or discussion of Quidnessett Country Club’s request to reclassify the water off its shoreline. Even more importantly for coastal access advocates, the decision appears to block any avenue for the country club to keep a  600-foot-long seawall built without permission along its northeastern property line two years ago.

“It’s been 519 days, but who’s counting?” Jed Thorp, advocacy director for Save the Bay, said in a phone interview Tuesday, referring to when regulators first caught wind of the illegal rock wall overlooking Narragansett Bay. “We’ve been saying all along the request was inappropriate. Hopefully we can get on to enforcement as quickly as possible.”

The country club erected the barrier in January 2023, seeking to protect its flagship golf course from rising sea levels. It wasn’t until state and federal regulators spotted the seawall more than six months later, issuing warnings of fines and other enforcement, that the club sought retroactive permission.

Quidnessett’s April 2024 petition asked the CRMC to reclassify a 1,400-foot-long section of the waters along its shoreline from the existing Type 1 “conservation area” to a less stringent Type 2 “low intensity use.” Under the Type 1 designation, any permanent structures like a seawall are strictly prohibited. A change to a Type 2 designation could — but doesn’t have to — allow for permanent structures like a seawall.

The move drew sharp criticism from Save the Bay and other coastal advocates whose objections were met with equally impassioned support by country club owners, members, and employees. Country club owners through a team of hired attorneys and experts implored the CRMC to consider the redesignation as a correction to a 50-year-old mistake, arguing that the area should have been under less stringent development restrictions all along.

Unpersuaded by this line of reasoning, a subcommittee of the full council voted 3-0 in December to recommend denial of Quidnessett’s petition. The full council’s vote Tuesday affirmed the position of the subcommittee and the agency’s staff report.

The council denied a request from Robin Main, an attorney representing Quidnessett, to speak before the vote Tuesday based on advice from CRMC attorney Anthony DeSisto, who cited the four prior, public subcommittee meetings as ample opportunity.

Main said in an email Tuesday night that she could not comment on the council’s decision. Janice Matthews, vice president of The Jan Companies, which owns the country club, also did not return a call for comment Tuesday night.

While state and federal regulators have issued a series of escalating warnings and threats of fines against the club for the existing stone wall, the club has not yet been forced to tear down the structure.

Thorp hoped that with the application denied, the CRMC would double down on enforcement, including forcing the country club to finally remove the seawall.

Rhode Island Attorney General Peter Neronha in a statement Tuesday night pointed to the ongoing saga as further evidence of the need to reform the politically appointed council.

“The fact that the Council even considered this request, a retroactive plea for relief from the consequences of their blatantly illegal action, tells you everything you need to know about the state of environmental oversight in Rhode Island,” Neronha said. 

His office submitted legislation to state lawmakers on Monday seeking to abolish the council and reshape the agency as an administrative department.

“Because while the Quidnessett decision ultimately came down in our favor, it’s only a matter of time before the next Quidnessett,” Neronha said. “We must embrace real and lasting reform before it’s too late. And the solution is a dedicated Department with no agenda beyond acting in the best interest of Rhode Islanders and the environment.”

Similar bills introduced in the 2023 and 2024 legislative sessions, including with Neronha’s backing, have failed to advance out of committee in either chamber.

Updated to include a response from Robin Main, attorney for Quidnessett Country Club.