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Trump administration policy could halt trillions in health, education, law enforcement, disaster relief, and other vital programs.
Attorney General Matthew J. Platkin of New Jersey, together with attorneys general from 22 other states, has filed a lawsuit against the Trump administration's latest policy, which threatens to withhold trillions of dollars in federal funding critical to various state programs across the nation. This policy, orchestrated by the President’s Office of Management and Budget (OMB), mandates a sudden and indefinite freeze on most federal aid to states, affecting areas such as health, education, law enforcement, and disaster relief.
“This may be a game to President Trump and his Administration, but to New Jersey and states across the country, last night’s actions are causing serious, immediate harm,” said New Jersey Attorney General Platkin. “We won’t just stand by as the Trump Administration rips away access to healthcare, food, law enforcement funding, and so much more that hurts our residents most in need. We will keep fighting in federal court alongside our partners in states across the country until these critical funds are restored and this blatantly unconstitutional order is rescinded.”
The OMB directive, issued unexpectedly on January 27, requires federal agencies to halt the distribution of a majority of federal assistance and loans to states starting 5:00 PM, January 28. The attorneys general argue that this abrupt pause has created widespread uncertainty and disruption, putting essential services at risk. This includes healthcare for families, educational support for public schools, and funding for services combating violence and supporting crime victims.
Critically, the lawsuit points out that the pause compromises necessary resources for law enforcement initiatives and disaster relief efforts in states like California and North Carolina, which rely on federal support for recovery from natural disasters. Additionally, it endangers funding for community health initiatives and services for individuals facing mental health and addiction challenges.
The coalition contends that the OMB’s sweeping policy not only disrupts state functions but also violates the U.S. Constitution and the Administrative Procedure Act. They argue that the policy unlawfully bypasses Congressional authority over federal spending, asserting that the executive branch cannot unilaterally halt appropriations approved by Congress.
“The Trump Administration’s directive to freeze federal grant funding across the board was poorly conceived and implemented and has already resulted in chaos across the country,” said Governor Phil Murphy. “This funding is crucial to the health, safety, and well-being of millions of Americans. All of us deserve better—from the police that would be defunded to the families who rely on aid to pay their bills. I stand with Attorney General Platkin and his fellow State Attorneys General who are swiftly taking legal action to protect our residents and ensure funding and services aren’t disrupted.”
Joining New Jersey in this legal battle are states including New York, California, and Illinois, among others, representing a broad geographic and political coalition determined to challenge what they view as an overreach of executive power. The group seeks a judicial order to immediately halt the OMB’s policy and safeguard vital funding channels that millions of Americans depend on.
An Overview
- Issued on January 27: The OMB notice ordered agencies to indefinitely withhold much of the federal aid to states starting at 5:00 p.m. on January 28.
- Impact on Critical Services: The abrupt freeze jeopardizes programs like Medicaid, community health centers, services for people with disabilities, and addiction/mental health treatment. It also impedes funding that law enforcement relies on to combat hate crimes and violence against women—and stalls FEMA disaster relief for communities recovering from wildfires and floods.
Attorney General Platkin’s Lawsuit
- Constitutional Concerns: The coalition argues the OMB policy violates the Constitution and the Administrative Procedure Act by overriding existing federal spending laws. They contend the president lacks authority to unilaterally suspend or alter congressionally approved funding streams.
- State Programs Already Affected: Despite attempts by the Trump administration to clarify the directive, many states report immediate funding disruptions, creating uncertainty for programs serving millions of Americans.
Who’s Involved
Joining Attorney General Platkin in this multi-state lawsuit are the attorneys general of New York, California, Illinois, Rhode Island, Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont, Washington, Wisconsin, and the District of Columbia. They seek a court order to block the new policy and preserve essential federal resources for their residents.
