New York Attorney General Letitia James has initiated a lawsuit, supported by 22 other attorneys general, to challenge a recent policy from the Trump administration. The policy, announced by the President’s Office of Management and Budget (OMB), halts the majority of federal funding to states indefinitely. This move threatens various state programs essential for health care, childcare, education, law enforcement, and disaster relief.
Attorney General James criticized the policy as "unconstitutional and dangerous," highlighting its potential impact on millions who depend on federally funded services. She stated that it has already caused significant disruption: "Already, this policy has unleashed chaos and uncertainty."
The OMB directive took effect on January 28 and suspends most federal assistance funding and loans. In New York alone, about $40 billion in federal funds are at stake for fiscal year 2025. Programs across the nation face jeopardy due to these changes.
James emphasized that freezing state funds could endanger public safety by depriving law enforcement of resources needed for combating hate crimes and supporting victims. Essential disaster relief efforts in states like California and North Carolina also stand to lose critical FEMA grants.
Despite attempts by the administration to clarify this policy's scope, many states report frozen funds affecting services such as Medicaid. The lawsuit argues that the OMB's decision violates both constitutional provisions and the Administrative Procedure Act by disregarding existing laws governing federal spending.
This legal action is spearheaded by Attorney General James along with her counterparts from California, Illinois, Massachusetts, New Jersey, Rhode Island, among others.