
House Republicans call for investigation into Obama-appointed judge in Trump funding case
Reps. Jim Jordan, R-Ohio, and Darrell Issa, R-Calif., chairman and member of the House Judiciary Committee, respectively, asked the judicial council for the First Circuit Court of Appeals to investigate Judge John McConnell, according to a letter obtained by Fox News Digital.
McConnell, an Obama appointee, has been presiding over a pivotal funding freeze case in Rhode Island brought by 22 states with Democratic attorneys general. The case centers on the Office of Management and Budget's order in January that federal agencies implement a multibillion-dollar suspension of federal benefits.
The states' lawsuit argued the funding freeze was illegal because Congress had already approved the funds for use. McConnell agreed with the states and blocked the administration from suspending the funds, and the case is now sitting before the First Circuit Court of Appeals.
McConnell wrote in an order in March that the Trump administration's funding suspension "fundamentally undermines the distinct constitutional roles of each branch of our government."
The judge said the freeze lacked "rationality" and showed no "thoughtful consideration of practical consequences" because it threatened states' "ability to provide vital services, including but not limited to public safety, health care, education, childcare, and transportation infrastructure."
Issa and Jordan said McConnell's long-standing leadership roles with Crossroads Rhode Island, a nonprofit that has received millions of dollars in federal and state grants, raised the possibility of a judicial ethics violation.
"Given Crossroads's reliance on federal funds, Judge McConnell's rulings had the effect of restoring funding to Crossroads, directly benefitting the organization and creating a conflict of interest," Jordan and Issa wrote.
Their letter was directed to Judge David Barron, chief judge of the First Circuit and chair of the First Circuit Judicial Council.
McConnell was quick to become one of Trump's judicial nemeses when he became involved with the funding freeze case. His initial order blocking the freeze and subsequent orders to enforce his injunction and unfreeze FEMA funds fueled criticism from Trump's allies.
The Trump-aligned group America First Legal has been highlighting McConnell's ties to Crossroads Rhode Island for months through its own investigation and complaint to the First Circuit.
Rep. Andrew Clyde, R-Ga., filed articles of impeachment against the judge in March, though impeachment as a solution for judges with whom Republicans take issue has not garnered widespread support among the broader Republican conference.
Vocal Trump supporter Laura Loomer targeted the judge's daughter on social media, and X CEO Elon Musk elevated her grievance on his platform.
One of McConnell's local newspapers, the Providence Journal, described the judge as a man "well-known" in Democratic political circles and a major donor to Democratic politicians and organizations before he was confirmed to the bench in 2011.
McConnell included Crossroads Rhode Island and his membership as a board member in his recent public annual financial disclosure reports. No parties in the case have actively sought his recusal at this stage.
An aide for the judge did not respond to a request for comment.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
Morning Bid: Trump moves to extend grip on Fed
A look at the day ahead in European and global markets from Rae Wee With U.S. President Donald Trump's nomination to fill a newly vacant seat at the Federal Reserve now out of the way, investors are awaiting a Senate confirmation to see if Stephen Miran would have a vote at the central bank's September meeting. Trump on Thursday picked the Council of Economic Advisers Chairman to serve out the final few months of an open spot on the Fed Board, following Fed Governor Adriana Kugler's surprise resignation last week. The news hardly elicited a response from markets on Friday, with Miran's chances of winning Senate confirmation still uncertain. The economist has called for a complete overhaul of the Fed's governance. But one thing's for sure - should Miran join the Fed, he would most certainly vote to lower rates. And even in a placeholder role, his appointment would give Trump a potentially more direct route to pursue his desire for easier monetary policy and sway over the world's most influential central bank. Trump also said that the White House continues to search for someone to serve in the 14-year Fed Board seat that opens February 1 and is also weighing options for a successor to Fed Chair Jerome Powell, whose term ends May 15, 2026. Bloomberg News reported on Thursday that Fed Governor Christopher Waller is emerging as a top candidate to be the central bank's next chair and has met with members of Trump's team, who are impressed with him. In other tariff news, the U.S. government on Thursday promised to amend a presidential executive order to remove overlapping tariffs on Japanese goods, Tokyo's trade negotiator said, after talks in Washington to fix what he called a "regrettable" oversight. In those discussions, Ryosei Akazawa urged U.S. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent to ensure that a 15% levy agreed last month on Japanese imports was not stacked on goods, such as beef, that are subject to higher tariffs. The removal of the tariff overhang lifted stocks in Tokyo and sent the Topix index climbing above the key psychological mark of 3,000 points for the first time on Friday, further buoyed by a streak of strong earnings reports. Shares of SoftBank Group rose nearly 11% after the technology investor reported a swing back to profit in the first quarter. Key developments that could influence markets on Friday: - St. Louis Fed President Alberto Musalem speaks - Under Armour Q1 earnings Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here.


CNN
34 minutes ago
- CNN
Trump signs executive order going after ‘debanking'
Investing Donald TrumpFacebookTweetLink Follow President Donald Trump signed an executive order Thursday that aims to punish banks for restricting services to customers based on their political or religious beliefs, formalizing 'debanking' protections that conservatives and crypto industry advocates have been pushing for. The order directs federal banking regulators to remove the 'reputation risk' language from their guidance to lending institutions — a broad concept that crypto and other businesses say led mainstream lenders to ice them out. While major banks have long denied having a political litmus test for their clients, the executive order adopts a right-wing claim that 'individuals, their businesses, and their families have been subjected to debanking on the basis of their political affiliations, religious beliefs or lawful business activities.' The order instructs regulators to review whether banks have had 'any past or current, formal or informal,' policies that led to 'politicized or unlawful debanking,' the order states. Debanking is an umbrella term for when a bank rejects a customer, which can happen for any number of reasons. Americans don't have a legal right to a bank account, and lenders often turn away people or businesses to comply with a mountain of rules and regulations designed to protect the financial system. Debanking has long caused problems for undocumented people and poor Americans, who often have to resort to unregulated payday lenders with much higher interest rates to make ends meet. But more recently, the term has been used by conservative groups that claim they are victims of a left-wing value system that's taken root across Corporate America. Major banks have repeatedly denied accusations that they have systemically targeted conservative groups, but in recent weeks many have responded by saying they welcome the president's efforts to scale back regulations. Still, Trump has doubled down on these perceived injustices and even claimed this week to have been a victim of debanking himself. On Tuesday, Trump accused JPMorgan Chase and Bank of America of rejecting his business after his first term ended. 'The banks discriminated against me very badly, and I was very good to the banks,' the president told CNBC. A JPMorgan spokesperson on Tuesday reiterated the bank's statement that it doesn't close accounts for political reasons but said it agrees with President Trump that 'regulatory change is desperately needed.' A Bank of America spokesperson declined to comment on Trump's allegation, but CEO Brian Moynihan also praised Trump for addressing the regulations in place, telling CNBC in an interview that 'the president's on the right issue.' Within the banking industry, several people told CNN that they disagree with Trump's claim about debanking conservatives but are willing to accept the outcome if helps get regulators off their backs. 'Banks are not closing accounts for political reasons,' one banking insider told CNN. 'But [Trump's] right that regulators historically have been relentless to get us to close accounts' by using the reputational risk concept. Another source said: 'It's nuts. We don't say we aren't going to bank conservatives.' 'This is maybe not the direct path we would have hoped to get to regulatory reform, but we'll take it,' the banking source said. Banks are hoping that regulators will give them more leeway to let customers know why their accounts are being closed, which isn't possible under the current regulatory guidance.
Yahoo
35 minutes ago
- Yahoo
Trump to Nominate Economic Adviser Miran to Fed Board of Governors
Stephen Miran, the head of the White House Council of Economic Advisers, was interviewed by WSJ Chief Economics Correspondent Nick Timiraos on May 28. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data