A federal judge has handed Hawaiʻi and a multistate coalition a sweeping win, granting summary judgment that blocks an administration plan to wipe out four small but influential federal agencies. The ruling permanently stops the government from dissolving the Institute of Museum and Library Services, the Minority Business Development Agency, the Federal Mediation and Conciliation Service, and the U.S. Interagency Council on Homelessness.
In a press release from the Hawaiʻi Department of the Attorney General, officials said Attorney General Anne Lopez led a 21-state coalition that sued in April to block the Executive Order at the center of the dispute. The U.S. District Court for the District of Rhode Island granted the coalition's motion for summary judgment, siding with the states and shutting down the attempted agency shutdown.
'I am extremely pleased with the result of this lawsuit, which protects so many different aspects of civil society in our state,' Lopez said in the statement. The office also announced the victory on X, where the full post is available on X.
How the Case Unfolded
Court filings show the coalition first went to court in April, challenging the Executive Order and asking a federal judge to hit pause while the lawsuit played out. In May, they secured a preliminary injunction that temporarily stopped parts of the administration's plan to dismantle the agencies.
The states then amended their complaint in June to add the U.S. Interagency Council on Homelessness to the case, widening the scope of the challenge. Judges set a briefing schedule that teed up the summary judgment motion that was decided this week, according to the docket on Justia. The docket tracks the key filings, amended complaint and earlier orders that shaped the case's path to Friday's ruling.
Why These Agencies Matter to Hawaiʻi
The four agencies are tiny by federal standards but provide targeted support that state partners say punches far above its budget weight. IMLS funds grants for libraries and museums, MBDA helps minority-owned businesses connect with federal programs, FMCS steps in to help resolve labor disputes, and USICH coordinates federal work to prevent and end homelessness.
The Hawaiʻi Department of the Attorney General said those programs help support University of Hawaiʻi research, the Hawaiʻi State Public Library System, local entrepreneurship initiatives and community partners across the islands. Those partners were quick to cheer the ruling.
'Today’s Court decision to keep the Administration from dismantling these important agencies is welcomed news,' University of Hawaiʻi interim vice president Chad Walton said in the state release.
Legal Ruling and What It Means
The coalition argued that the Executive Order tried to sidestep Congress and violated both the Administrative Procedure Act and the Constitution. The district court agreed, holding that the administration's actions were unlawful when it granted summary judgment, according to the New York Attorney General's office.
Defendants have previously filed motions and notices in the case that hint future appeals could be coming, and the docket on Justia lays out the procedural history leading up to this decision. For now, the ruling from the district court bars any effort to carry out the Executive Order's plan to dismantle the four agencies.
Local Stakes and What Comes Next
State officials say the judgment effectively locks in the status quo for now. Programs that rely on the four agencies can keep operating as they have been, and state and local partners get some breathing room to manage ongoing services and grant work without wondering if their federal backstop will disappear overnight.
The Washington State Attorney General's office, another member of the coalition, said the decision protects funding and services that libraries, museums, workers and minority entrepreneurs count on, a point echoed by other states involved in the case. In Hawaiʻi, local agencies said they plan to keep working with the federal bodies and the Attorney General's office to minimize disruption as the legal process continues.
Appeals remain a possibility, but the immediate effect is straightforward: programs tied to IMLS, MBDA, FMCS and USICH stay protected under the district court's order while lawyers on both sides weigh their next move. State officials are framing the outcome as a firm check on unilateral efforts to dismantle federal agencies and a win for the organizations that depend on them.
