$128 Million Conflict? Federal Judge Who Blocked Trump’s Spending Freeze Faces Ethics Questions

A new controversy is raising serious concerns over judicial ethics and transparency after America First Legal (AFL) revealed what it says is a significant potential conflict of interest involving Judge John McConnell, Chief Judge of the U.S. District Court in Rhode Island. McConnell recently blocked a temporary federal spending freeze ordered by President Donald Trump — but now, allegations have emerged that could cast doubt on the impartiality of his ruling.

According to a February 16, 2025 post by AFL on the social platform X, Judge McConnell has spent nearly two decades on the board of a nonprofit organization that has received more than $128 million in government funding — including money potentially impacted by his recent ruling.

“Judge McConnell, the federal judge blocking President Trump’s spending freeze, has served for 18 years on the board of a nonprofit that has received $128M in government funding during that time,” AFL stated. “Now, after his ruling to keep federal funds flowing, his nonprofit stands to receive millions more. Judge McConnell must recuse himself IMMEDIATELY.”

The nonprofit in question is Crossroads Rhode Island, which provides housing and social services throughout the state. AFL claims that Judge McConnell is still actively connected to the organization as Chair-Emeritus and is publicly listed on IRS tax filings (Form 990) as a board director for multiple years — even after his appointment to the federal bench in 2013.

In particular, Crossroads Rhode Island reportedly received over $18.6 million in public funding in 2023 alone, accounting for more than half of its total annual revenue, according to its most recent Form 990. AFL says their review of state and federal records shows that since McConnell’s time as vice chair beginning in 2009, the nonprofit has received nearly $118 million in government funds, much of it routed through state agencies via federal grants.

What’s more, AFL notes that Crossroads has already received nearly $2.9 million in fiscal year 2025 to support state-run programs — one of the very funding streams Judge McConnell ruled must remain active.

In his ruling to block President Trump’s spending freeze, Judge McConnell argued that states rely on continued access to federal funding to maintain essential services. However, AFL argues that, because of his long-standing leadership role in an NGO that directly benefits from these funds, Judge McConnell should have recused himself from hearing the case.

“USAspending.gov shows that in the past 15 years, 155 federal grants awarded to Rhode Island list Crossroads Rhode Island as a sub-award recipient,” AFL noted. “In FY2023 alone, more than $10 million in federal funding flowed through Rhode Island agencies to Crossroads.”

AFL concluded that if Judge McConnell knew — or should have known — that his ruling could directly benefit an organization he has led and remains affiliated with, then he had a duty to disclose this conflict and step aside from the case.

As of now, Judge McConnell has not responded publicly to the allegations. Legal experts say this situation could lead to further scrutiny from judicial ethics committees or even formal calls for recusal in future cases involving federal funding to Rhode Island NGOs.