In a significant legal setback for the US Department of Agriculture, judges in Massachusetts and Rhode Island have dismissed the agency’s assertion that it cannot tap into a contingency fund to cover benefits during the ongoing government shutdown. This fund reportedly holds a substantial $8.1 billion, but the USDA claimed it was inaccessible for this purpose.

Reacting to these rulings, President Donald Trump revealed that he has directed his legal team to consult with the courts to determine how the government can expediently finance the benefits. The administration’s lawyers have expressed doubts about their legal authority to use existing funds to pay the Supplemental Nutrition Assistance Program (SNAP) benefits.

As the shutdown drags on, now approaching the one-month milestone, there’s a growing trend of courts stepping in to address the escalating issues caused by the deadlock. Earlier this week, a federal judge in California took the notable step of indefinitely halting the administration’s plan to lay off thousands of federal employees, citing that the government was unjustly leveraging the shutdown as a basis for the dismissals.

The administration may yet pursue appeals against these decisions. When questioned by CNN about the USDA’s potential actions if courts mandate the use of the contingency fund, Secretary Brooke Rollins stated, “We’re looking at all the options.”

Meanwhile, states have halted the distribution of November’s benefits following an October 10 directive from the USDA, instructing them to cease the issuance of these benefits, adding to the growing concerns over the shutdown’s impact.

States stopped the process of issuing benefits for November after the USDA sent them a letter on October 10 ordering them to do so.

States send SNAP enrollees’ information to vendors every month so they can load funds onto recipients’ benefit cards.

Each state has a specific date by which they must send the information ahead of the new month in order for benefits to go out on time, according to the lawsuit.

Payments are made on a staggered basis throughout the month.

Talwani acknowledged the likely delay in benefits during a hearing on Thursday, and also asked about the process of providing partial payments to recipients next month since the contingency fund alone won’t cover the full amount.

“We’re dealing with the reality that … the benefits aren’t going to be there on November 1,” she said.