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States sue Trump Administration over federal funding suspension

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Friday, April 11, 2025

States sue Trump Administration over federal funding suspension

State AG
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Attorney General Peter Neronha | Facebook Website

Attorney General Peter F. Neronha is co-leading a group of 23 attorneys general in a lawsuit against the Trump administration to prevent the implementation of a new policy that would halt trillions of dollars in federal funding. This legal action was filed in the United States District Court for the District of Rhode Island.

The policy, introduced by the President’s Office of Management and Budget (OMB), proposes an indefinite suspension on most federal assistance to states. According to Attorney General Neronha, this move threatens programs vital for health, childcare, education, public safety, and disaster relief across the country. The coalition seeks a court order to block this OMB directive and ensure continued funding.

“Any pause to federal funding programs would have immediate and catastrophic effects for Rhode Islanders and Americans everywhere,” stated Attorney General Neronha. He emphasized that such measures could lead to financial chaos affecting essential services including healthcare and food assistance for children.

The OMB's directive issued on January 27 instructs all federal agencies to suspend major financial support starting at 5:00 pm on January 28. The lawsuit highlights the disruption caused by this policy to millions relying on state-funded services like community health centers and mental health treatment programs.

Attorney General Neronha also expressed concern about potential risks posed by reduced law enforcement resources due to halted funding from the U.S. Department of Justice aimed at combating hate crimes and violence against women. Furthermore, critical infrastructure projects like highway reconstruction could face setbacks due to frozen funds.

Despite attempts by the administration to clarify this policy's scope, states report immediate impacts with services such as Medicaid being jeopardized nationwide. The coalition argues that OMB’s decision breaches constitutional provisions and existing laws governing federal expenditure.

The lawsuit is spearheaded by attorneys general from Rhode Island, New York, California, Illinois, Massachusetts, and New Jersey with additional support from their counterparts in Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina Oregon Vermont Washington Wisconsin as well as the District of Columbia.

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