Attorney General James Sues to Halt Trump’s Funding Blackout

New York Attorney General Letitia James today led a coalition of 22 other attorneys general in a lawsuit aimed at halting the Trump administration’s new policy that threatens to withhold trillions of dollars in essential federal funding. The policy, which was issued by the Office of Management and Budget (OMB), places an indefinite halt on the majority of federal assistance to states.

The coalition argues that this move is unconstitutional and poses a significant risk to millions of Americans who rely on federally funded programs for critical services such as healthcare, education, law enforcement, disaster relief, and more. The lawsuit seeks a court order to immediately stop the enforcement of the OMB policy.

Attorney General James declared, ‘Immediately blocking the majority of federal funds to states is unconstitutional and dangerous.’ She cited the chaos and uncertainty already unleashed by the policy, including halting drug enforcement efforts and Medicaid portals shutting down.

The OMB policy, effective from January 28, directs all federal agencies to pause most federal assistance funding and loans to states. The coalition’s lawsuit highlights that this move has caused immediate disruptions for millions of Americans relying on state programs that receive these funds. In New York, the Department of Health stands to lose about $40 billion in federal funding this fiscal year alone.

Attorney General James and her coalition also argue that the OMB policy puts Americans at risk by depriving law enforcement of crucial resources. The lawsuit notes that the policy would halt support for initiatives like combating hate crimes and providing services to crime victims. Furthermore, essential disaster relief funds for states like California and North Carolina are also threatened.

The administration has attempted to clarify the scope of the OMB policy, but states have already reported funds being frozen. The coalition’s lawsuit claims that the OMB policy violates the Constitution and the Administrative Procedure Act by imposing a government-wide spending halt without consideration for governing laws and regulations.

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