James Halts Trump’s Illegal Funding Freeze

New York Attorney General Letitia James today issued a resounding victory for New Yorkers and the American people, as the U.S. Court of Appeals for the First Circuit largely upheld a lower court order blocking the Trump administration’s illegal attempt to freeze trillions in essential federal funding.

In a statement, AG James emphasized that the ruling was a rebuke to the president’s power grab, stating, ‘This decision is a clear reminder that the president cannot treat congressionally-approved funding like a switch he can flip on and off.’

The Trump administration had attempted to cut off funding for critical services such as healthcare, disaster response, public safety, and other essential functions. AG James described this move as putting ‘millions of Americans at risk,’ demonstrating the severity of the situation.

In January 2025, Attorney General James led a coalition of 22 other attorneys general in suing to halt the implementation of this new federal policy. Following a successful preliminary injunction obtained in March 2025, today’s appeal victory largely affirms that order.

AG James expressed her commitment to continue fighting for New Yorkers, saying, ‘I will continue fighting to ensure New Yorkers receive the resources that Congress awarded.’ This latest legal battle underscores the ongoing efforts by state attorneys general to counteract the Trump administration’s aggressive and unlawful policies.

The U.S. Court of Appeals’ decision is a significant win for public interest groups, citizens, and states across the nation, preserving critical federal funding that is essential for maintaining vital services at the local level.

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