On Wednesday, March 5, 2025, The Federalist published an article detailing a controversial ruling by Judge John McConnell, the chief judge of the federal district court in Rhode Island, regarding a spending freeze initiated by the Trump Administration. The article raises concerns about McConnell’s potential conflict of interest, suggesting that his continued involvement in the case undermines the integrity of the judicial process.
The Trump Administration’s Office of Management and Budget (OMB) had directed federal department heads to impose a temporary suspension on various forms of federal financial assistance, including grants and loans. This action aimed to ensure that taxpayer funds were not supporting programs promoting diversity, equity, and inclusion (DEI), gender ideology, or the Green New Deal. In response, a coalition of 22 states and the District of Columbia filed a lawsuit, claiming that the administration’s funding freeze was unconstitutional.
Judge McConnell subsequently ruled against the Trump Administration, ordering the unfreezing of the allocated funds. The administration is currently appealing this decision. Another case related to the spending freeze is being overseen by U.S. District Judge Loren AliKhan in Washington, D.C.
The article highlights McConnell’s long-standing ties to Crossroads Rhode Island, a nonprofit organization where he has served on the board of directors for 18 years. Crossroads Rhode Island receives a significant portion of its funding—over half—from federal sources. In 2023 alone, the organization reportedly received more than $18 million in government funding, which accounted for a substantial part of its total revenue.
Critics point out that during McConnell’s tenure on the board, Crossroads Rhode Island has received over $128 million in federal and state funding. This raises questions about his impartiality in the current case, as the nonprofit’s financial interests could be directly affected by the ruling on the spending freeze.
In addition to Crossroads Rhode Island, the article notes that McConnell is connected to One Neighborhood Builders, a nonprofit that focuses on affordable housing development. This organization has received contracts from the Department of Housing and Urban Development (HUD) and has partnered with Crossroads Rhode Island on various initiatives. The financial relationships between these nonprofits and federal funding sources raise concerns about a potential conflict of interest for McConnell.
The article cites federal law, specifically 28 U.S.C. § 455, which mandates that judges disqualify themselves from cases where their impartiality could reasonably be questioned. Additionally, the law stipulates that judges must recuse themselves if they hold a fiduciary role or have an interest that could be substantially impacted by the case’s outcome. The piece argues that McConnell’s failure to recuse himself from the spending freeze case contradicts these legal requirements.
The controversy surrounding McConnell’s ruling has attracted attention, particularly as the case involves a significant number of state attorneys general, many of whom are Democrats. The article notes that the plaintiffs include notable figures such as Aaron Ford of Nevada, Keith Ellison of Minnesota, and Letitia James of New York, among others.
The article concludes by mentioning a recent Supreme Court decision that showcased a divided stance on related matters. The court’s majority sided with a ruling from D.C. District Court Judge Amir Ali, a Biden appointee, directing the State Department and USAID to pay $2 billion to non-governmental organizations for work completed prior to a temporary restraining order issued by the court.
As the appeals process unfolds and further legal actions are anticipated, the implications of Judge McConnell’s ruling and the questions surrounding his impartiality continue to be scrutinized.
Source: The Federalist
