More constitutional problems for Bush

A US district judge strikes down the executive order "which blocked all the assets of groups or individuals he named as "specially designated global terrorists" after the 2001 terrorist attacks."

The case centered on two groups, the Liberation Tigers, which seeks a separate homeland for the Tamil people in Sri Lanka, and Partiya Karkeran Kurdistan, a political organization representing the interests of Kurds in Turkey.

U.S. District Judge Audrey Collins enjoined the government from blocking the assets of the two groups.

The judge's 45-page ruling was a reversal of her own tentative findings last July in which she indicated she would uphold wide powers asserted by Bush under an anti-terror financing law. She delayed her ruling then to allow more legal briefs to be filed.

She also struck down the provision in which Bush had authorized the secretary of the treasury to designate anyone who "assists, sponsors or provides services to" or is "otherwise associated with" a designated group.

However, she let stand sections of the order that penalize those who provide "services" to designated terrorist groups. She said such services would include the humanitarian aid and rights training proposed by the plaintiffs.