James Blocks Trump’s Illegal Funding Freeze

New York – In a fierce battle against the Trump administration’s move to arbitrarily cut federal funds to states, New York Attorney General Letitia James has achieved a significant victory. The U.S. Court of Appeals for the First Circuit has largely upheld a lower court order that blocked an illegal effort by former President Trump to freeze trillions in essential funding.

Attorney General James emphasized the gravity of the situation, stating, “This decision is a clear reminder that the president cannot treat congressionally-approved funding like a switch he can flip on and off. For more than a year, the Trump administration has tried to freeze critical funding that states rely on to serve their communities, and once again the courts have rejected this unlawful power grab.”

The appellate victory comes after James led a coalition of 22 other attorneys general in challenging a new federal policy aimed at categorically withholding trillions of dollars in essential funding. This decision impacts vital public services such as healthcare, disaster response, and public safety.

In January 2025, the lawsuit was filed to stop the implementation of this policy, which would have had dire consequences for states across the nation. In March 2025, a preliminary injunction was issued, and today’s ruling by the U.S. Court of Appeals for the First Circuit largely affirms that decision.

James expressed her commitment to fighting for New York’s resources, saying, “This ruling is a victory for families and communities, and I will continue fighting to ensure New Yorkers receive the resources Congress awarded.”

The case underscores the ongoing battle between states and the federal government over funding and authority. James’ success sends a strong message that attempts to undermine state services through illegal measures will be met with judicial resistance.