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Democratic states plan to sue over Trump's federal grant funding freeze

Judge blocks directive freezing federal assistance
Judge blocks directive to freeze federal assistance 02:01

Two dozen Democratic attorneys general said Tuesday afternoon they are suing to stop the White House from instituting a pause to trillions of dollars in federal grant, loan and other aid funding.

A Monday night White House budget office memo called for the spending freeze on federal assistance to begin by 5 p.m. Tuesday, potentially affecting a vast range of programs, from aid to nonprofits and universities to small business loans and state and local government grants.

The memo claims some $3 trillion was spent in 2024 on federal assistance programs. 

New York, California, Illinois, Massachusetts, New Jersey and Rhode Island said Tuesday they planned to sue, and were soon joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont, Washington, Wisconsin and the District of Columbia.

"What a ham-handed way to run a government. It is astonishing," said Rhode Island Attorney General Peter Naronha, adding that the memo was "written in such a way that it was barely understandable."

California Attorney General Rob Bonta, joining the virtual press conference from the passenger seat of a car, said the memorandum was ambiguous in its wording, "by design."

The Monday night directive from the Office of Management and Budget said its goal was to advance White House priorities, including "to advance a stronger and safer America, eliminating the financial burden of inflation for citizens, unleashing American energy and manufacturing, ending 'wokeness' and the weaponization of government, promoting efficiency in government, and making America healthy again."

The memo directs federal agencies to assess compliance with President Trump's executive orders — specifically targeting "DEI, woke gender ideology and the Green New Deal." It does not spell out what exactly these policies refer to, or what programs will be affected.

New York Attorney General Letitia James, whose office last year won an approximately $500 millionjudgement against President Trump and his company, called the move unconstitutional. 

"This president has exceeded his authority, he has trampled the constitution, and undermined a coequal branch of government," said James. She and other attorneys general said the directive is an attempt to shorten Congress' purse strings.

New Jersey Attorney General Matt Platkin echoed the accusation that the president is undermining Congress.

"He does not get to wake up in the morning or after an afternoon nap and direct his entire government to stop funding critical services that Congress have duly authorized and appropriated," Platkin said.

The order is likely to spark an onslaught of litigation, and even before states took action on Tuesday, a coalition that includes the National Council of Nonprofits and the American Public Health Association asked a federal judge for an emergency order to block the memo from taking effect. The judge issued an administrative stay Tuesday, pausing the freeze until at least Monday, Feb. 3 to allow for further litigation.

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