WASHINGTON (AP) — A federal judge on Tuesday ordered the Trump administration to restore $12 million that Congress appropriated for Radio Free Europe, a pro-democracy media outlet at risk of going dark for the first time in 75 years.
U.S. District Judge Royce Lamberth also tucked a lesson on the three branches of government inside Tuesday's ruling, cautioning that the system of checks and balances established by the U.S. Constitution must remain intact if the nation is going to continue to thrive.
Lamberth granted the temporary restraining order for the U.S. Agency for Global Media to disburse money for April 2025 for Radio Free Europe/Radio Liberty pending the outcome of a lawsuit seeking to keep the station on the air. He said the Trump administration could not unilaterally revoke funding approved by Congress.
“In interviews, podcasts, and op-eds, people from both inside and outside government have variously accused the courts — myself included — of fomenting a constitutional crisis, usurping the Article II powers of the Presidency, undercutting the popular will, or dictating how Executive agencies can and should be run,” wrote Lamberth, who was appointed by President Ronald Reagan.
Those notions reflect a “fundamental misunderstanding” of the role of the federal judiciary and of the Constitution itself, he said.
“Reasonable people can reach different conclusions in complicated legal disputes such as this,” Lamberth wrote, and that's why the appellate courts exist. The administration could also ask Congress to pull back the funds, he noted.
Attorneys for the media outlet say President Donald Trump’s administration has terminated nearly all of its contracts with freelance journalists, missed payments on leases and furloughed 122 employees. They warn that more employees will be furloughed and more contracts will be canceled on May 1 if funding isn’t restored.
“By the end of May, RFE/RL will be forced to cancel the contracts supporting its core live news broadcasting and reporting operations. In June 2025, RFE/RL will almost entirely cease its operations,” plaintiffs’ lawyers wrote.
Government attorneys argued that the judge doesn’t have jurisdiction over what amounts to a contract dispute that belongs in the Court of Federal Claims.
“Plaintiff seeks to place this Court as the arbiter of the grant agreement terms between the parties. But doing so would put the Court in an improper policymaking role,” they wrote.
Radio Free Europe/Radio Liberty started broadcasting during the Cold War. Its programs are aired in 27 languages in 23 countries across Eastern Europe, Central Asia and the Middle East. Its corporate headquarters are in Washington; its journalistic headquarters are based in the Czech Republic.
The Trump administration has tried to make deep cuts at other government-operated, pro-democracy media outlets, including Voice of America.
On April 22, however, Lamberth agreed to block the administration from dismantling Voice of America. The judge ruled that the administration illegally required Voice of America to cease operations for the first time since its World War II-era inception.
Congress makes the laws, but they must be signed by the president to take effect, Lamberth wrote in Tuesday's ruling, and that's exactly what happened in March when Trump signed the continuing resolution that allocated the grant funding to the government-operated media outlets.
Federal judges take an oath to render their decisions impartially, and Lamberth said he doesn't have a stake in the outcome of this case. He also said he doesn't have any animosity toward the president nor loyalty to the media outlets.
But the role of the courts is to interpret the laws of the Constitution and declare what the law is, he said — and unlike the executive branch, the courts have no means to independently enforce those laws.
By issuing the ruling, “I am humbly fulfilling my small part in this very constitutional paradigm – a framework that has propelled the United States to heights of greatness, liberty and prosperity unparalleled in the history of the world for nearly 250 years,” Lamberth wrote. "If our nation is to thrive for another 250 years, each co-equal branch of government must be willing to courageously exert the authority entrusted to it by our Founders.”
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Associated Press writers Lindsay Whitehurst and Rebecca Boone contributed to this story.
FILE - The headquarters of Radio Free Europe/Radio Liberty is seen with the United States flag in the foreground, Jan. 15, 2010, in Prague. (Michal Kamaryt/CTK via AP, File)
NEW YORK (AP) — Stocks of credit-card companies are tumbling on Monday after President Donald Trump threatened moves that could eat into their profits. The rest of Wall Street, meanwhile, was showing only modest signals of concern after tensions ramped to a much higher degree between the White House and the Federal Reserve.
The S&P 500 edged down by 0.1% from its all-time high as U.S. stocks drifted through mixed morning trading, while prices for gold and other investments that tend to do well when investors are nervous rose. The value of the U.S. dollar also dipped against the euro and other currencies amid concerns that the Fed may have less independence in setting interest rates to keep inflation under control.
The Dow Jones Industrial Average was down 179 points, or 0.4%, as of 10 a.m. Eastern time, and the Nasdaq composite was nearly unchanged.
Some of the market's sharpest drops came from credit-card companies, as Synchrony Financial, Capital One Financial and American Express all fell between 4% and 7%. They sank after Trump said he wanted to put a 10% cap on credit-card interest rates for a year. Such a move could eat into profits for credit card companies.
But it was a separate move by Trump that was grabbing more attention on Wall Street. Over the weekend, the Federal Reserve's chair, Jerome Powell, said the U.S. Department of Justice subpoenaed the Fed and threatened a criminal indictment over his testimony about renovations underway at its headquarters.
With an unusual video statement released on Sunday, Powell said his testimony and the renovations are “pretexts” for the threat of criminal charges, which is really “a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”
The Fed has been locked in a feud with the White House about interest rates. Trump has been loudly calling for lower interest rates, which would make borrowing cheaper for U.S. households and companies and could give the economy a kickstart.
The Fed did cut its main interest rate three times last year and has indicated more cuts may be arriving this year. But it’s been moving slowly enough that Trump has nicknamed Powell “Too Late.”
In a brief interview with NBC News Sunday, President Donald Trump insisted he didn’t know about the investigation into Powell. When asked if the investigation is intended to pressure Powell on rates, Trump said, “No. I wouldn’t even think of doing it that way.”
Powell’s term as chair ends in May, and Trump administration officials have signaled that he could name a potential replacement this month. Trump has also sought to fire Fed governor Lisa Cook.
The Fed has traditionally operated separately from the rest of Washington, making its decisions on interest rates without having to bend to political whims. Such independence, the thinking goes, gives it freedom to make unpopular moves that are necessary for the economy’s long-term health.
Keeping interest rates high, for example, could slow the economy and frustrate politicians looking to please voters. But it could also be the medicine needed to get high inflation under control.
In the bond market, the yield on the 10-year Treasury ticked up to 4.19% from 4.18% late Friday. A less independent Fed and higher inflation in the long term could also erode the value of the U.S. dollar, and it slipped 0.3% against the euro and 0.4% against the Swiss franc.
In stock markets abroad, indexes rose across much of Europe and Asia. Stocks jumped 1.4% in Hong Kong and 1.1% in Shanghai for two of the world’s bigger gains following reports that Chinese leaders were preparing more help for the economy.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Traders work on the floor at the New York Stock Exchange in New York, Friday, Jan. 9, 2026. (AP Photo/Seth Wenig)
James Lamb works on the floor at the New York Stock Exchange in New York, Friday, Jan. 9, 2026. (AP Photo/Seth Wenig)
Specialist Anthony Matesic works on the floor of the New York Stock Exchange, Thursday, Jan. 8, 2026. (AP Photo/Richard Drew)
Daniel Kryger works on the floor at the New York Stock Exchange in New York, Friday, Jan. 9, 2026. (AP Photo/Seth Wenig)
Dealers watch computer monitors near the screens showing the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Monday, Jan. 12, 2026. (AP Photo/Lee Jin-man)
A dealer walks near the screens showing the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Monday, Jan. 12, 2026. (AP Photo/Lee Jin-man)
Dealers talk near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Monday, Jan. 12, 2026. (AP Photo/Lee Jin-man)
A dealer walks near the screens showing the foreign exchange rates at a dealing room of Hana Bank in Seoul, South Korea, Monday, Jan. 12, 2026. (AP Photo/Lee Jin-man)
