Press Release: 2025-01-29

AG Campbell Sues to Stop Trump Administration from Withholding Essential Federal Funding

 



FOR IMMEDIATE RELEASE:



1/28/2025



MEDIA CONTACT



Molly McGlynn, Communications Director



 Phone



Call Molly McGlynn, Communications Director at 617-727-2543



 Online



Email Molly McGlynn, Communications Director at Molly.McGlynn@mass.gov



BOSTON — Massachusetts Attorney General Andrea Joy Campbell is co-leading a coalition of 23 attorneys general in suing the Trump Administration to stop the implementation of a new policy that could withhold trillions of dollars in funding that every state in the country relies on to provide essential services to residents. The new policy, issued by President Trump’s Office of Management and Budget (OMB), could put an indefinite pause on the majority of federal assistance to states. The lawsuit was filed today in federal district court in Rhode Island.



Earlier tonight, as part of a separate lawsuit, a judge for the federal district court in Washington, D.C. temporarily blocked the implementation of the Trump Administration’s policy until Monday, February 3. The coalition’s lawsuit will proceed.



The Commonwealth of Massachusetts receives more than $20 billion in federal funding each year to support projects that improve the health, welfare, and economic stability of residents’ lives. Massachusetts employs nearly 3,000 people through federal grants.



The Trump Administration’s policy could jeopardize state programs that, among other things: provide critical health and childcare services to families in need; deliver support to public schools; combat drug trafficking, hate crimes and violence against women; provide life-saving disaster relief, improve infrastructure like roads and bridges; replace lead drinking water pipes; and make our communities more resilient in a changing climate. 



AG Campbell and the coalition of attorneys general are seeking a court order to immediately stop the OMB policy and preserve essential funding. 



“In Massachusetts, residents rely on federal funding for healthcare, childcare, education and jobs. President Trump’s action to pause federal aid is a reckless abuse of power that harms the very working people and families he promised to protect,” said AG Campbell. “Today’s action sends a clear message to the Trump Administration that attorneys general will continue to do our jobs to protect our residents and state economies, and hold anyone, including the President, accountable for causing them harm.”



The OMB policy, issued late on January 27, directs all federal agencies to pause federal assistance funding to states and other entities beginning today and continuing indefinitely. As AG Campbell and the coalition describe in their lawsuit, OMB’s policy has caused chaos and uncertainty for millions of Americans who rely on state programs that receive these federal funds. Essential community health centers, addiction and mental health treatment programs, services for people with disabilities, and other critical health services, among many other important programs and services, are jeopardized by OMB’s policy. 



AG Campbell and the coalition also argue that jeopardizing state funds will put Americans in danger by depriving law enforcement of much-needed resources. OMB’s policy would pause support for the U.S. Department of Justice’s initiatives to combat drug trafficking, hate crimes and violence against women, support community policing, and provide services to victims of crimes. In addition, the coalition of attorneys general note that the OMB policy jeopardizes essential disaster relief funds to places like California and North Carolina, where tens of thousands of residents are relying on FEMA grants to rebuild their lives after devastating wildfires and floods.  



While the administration has attempted to clarify the scope and meaning of the OMB policy, states have already reported that funds have been frozen, including nearly $40 million that is due to the Commonwealth of Massachusetts and that the state has been unable to withdraw.



As part of their lawsuit, the coalition of attorneys general argue that OMB’s policy violates the United States Constitution and the Federal Administrative Procedure Act by imposing a government-wide stop to spending without any regard for the laws and regulations that govern each source of federal funding. The attorneys general argue that the president cannot decide to unilaterally override laws governing federal spending, and that OMB’s policy unconstitutionally overrides Congress’s power to decide how federal funds are spent. 



This lawsuit was co-led by the attorneys general of Massachusetts, New York, California, Illinois, New Jersey and Rhode Island. Joining the lawsuit are 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.