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Attorneys general sue over OMB directive freezing $3 trillion in federal funds

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Thursday, January 30, 2025

Attorneys general sue over OMB directive freezing $3 trillion in federal funds

State AG
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Attorney General Rob Bonta | Official website

California Attorney General Rob Bonta, alongside New York Attorney General Letitia James, has initiated a lawsuit against a new Office of Management and Budget (OMB) directive. The directive threatens to freeze up to $3 trillion in federal funding, impacting disaster recovery and various public services such as health, education, and safety programs. A coalition of 23 attorneys general seeks a temporary restraining order to prevent the directive from taking effect due to its potential harm to state-administered programs.

"The Trump Administration is recklessly disregarding the health, wellbeing, and public safety of the people it is supposed to serve," stated Attorney General Bonta. He criticized the scope of the directive as unprecedented and potentially devastating if implemented. Bonta emphasized that this action could disrupt essential community programs like food provision for children and medical care.

The OMB's sudden announcement of freezing funds has caused significant concern among states reliant on these resources. In California alone, there are worries about FEMA funding crucial for recovering from recent wildfires in Los Angeles, with estimated economic losses reaching $150 billion.

The lawsuit contends that the OMB's action violates both the U.S. Constitution and the Administrative Procedure Act. The attorneys general argue that Congress has not given unilateral authority to OMB to halt federal financial assistance indefinitely without regard for federal statutes or contractual terms. They claim this move breaches "separation of powers" by infringing on Congress's exclusive power over federal spending.

Joining Bonta and James in this legal challenge are attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New Mexico, Oregon, Rhode Island Vermont Washington Wisconsin and the District of Columbia.

ORGANIZATIONS IN THIS STORY

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