Trump Hit With a New Lawsuit Over Gutting Crucial Programs
Donald Trump’s freeze on federal loans and grants is not going down well.
A torrent of lawsuits are challenging the Trump administration on the forty-seventh president’s forthcoming spending freeze on federal grants and loans.
Democratic attorneys general from New York, California, Illinois, New Jersey, Rhode Island, Arizona, and Massachusetts announced their intentions to block the funding freeze before it’s scheduled to begin at 5 p.m. on Tuesday.
At a joint press conference held by the coalition of attorneys general, Rhode Island Attorney General Peter Neronha criticized the order as “barely understandable” and argued that the White House’s decision to enforce the unconstitutional order would break a 248-year-old compact with the nation’s states, which expect the funds that citizens dutifully pay in taxes to find their way back to them.
“Every American, every Rhode Islander, is impacted by this. If you drive on a road, you’re impacted. If you need health care, you’re impacted. If you are a man or a woman in blue, or a person protected by them, you are impacted by this blatantly unconstitutional action,” Neronha said.
New Jersey Attorney General Matt Platkin expressed optimism that the large coalition would be able to successfully block the unlawful directive.
Another coalition of nonprofits and small businesses also filed a lawsuit Tuesday challenging the decision, claiming that the Trump administration’s decision to excise money from national programs will “have a devastating impact on hundreds of thousands of grant recipients.”
The group, which consists of the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE, has asked a court to place a stay on the impending freeze on the basis that Trump’s Office of Management and Budget does not have the authority to unilaterally shutter funding to hundreds of agencies, which have already had their spending approved by Congress.
“The actions taken yesterday are a callous disregard for the rule of law and a drastic abuse of power that will harm millions of Americans across the country,” Skye Perryman, the head of the group’s legal representation, Democracy Forward, told Reuters.
The spending suspension, directed by OMB, is expected to impact 2,600 accounts across the government and pause the distributions of tens of billions of dollars to programs across the nation, until Trump decides the agencies distributing the money fall in line with his agenda. Some of the programs dependent on the congressionally appropriated funds could include infrastructure initiatives, housing assistance, disaster relief, educational programs, grants for suicide prevention efforts including the suicide lifeline, money for rural hospitals, opioid prevention funding, and HIV/AIDS treatment.
The freeze will also implicate FEMA funding, and, by extension, funds to extinguish and control the raging wildfires around Los Angeles, according to California Attorney General Rob Bonta.
“I think the ambiguity is by design,” Bonta said during the joint attorneys general press conference. “That confusing, that chilling effect, has swept in nearly all the programs that the federal government funds.”
Agencies will need to prove that their programs do not promote or support “environmental justice,” abortion, DEI initiatives, or “woke gender ideology,” or provide services to “illegal aliens,” in order to resume the cash flow, according to the OMB memo.
The halted funds also extended to programs that senior administration officials insisted wouldn’t be hurt: By Tuesday at noon, multiple states reported that they had been locked out of their Medicaid portals amid the nationwide holdup, threatening health care access for some 72 million low-income Americans who rely on the joint federal and state health care program for comprehensive health care insurance.
The OMB directive was issued by Acting Director Matthew Vaeth. Former OMB associate director Topher Spiro, who claimed he knows Vaeth, wrote on X that the OMB memo in reality read more like a “hostage note written directly by [Trump’s OMB nominee, Russell] Vought, who is not confirmed.”
“In sum, Russ Vought is illegally carrying out his ideological agenda with greatest harm to the most vulnerable—including many in the working class and rural communities who voted for Trump,” wrote Spiro in a separate post. “A massive fraud.”
In a statement, Vermont Senator Bernie Sanders said that the freeze would have devastating implications for the “most vulnerable people in our country,” and described the Trump administration’s forceful disregard of Congress’s powers as a “dangerous move towards authoritarianism.”
This story has been updated.