New Trump Administration Policy Would Block Trillions in Funding for Health, Education, Law Enforcement, Disaster Relief, and other Essential State Programs

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TRENTON – New Jersey Attorney General Matthew J. Platkin and a coalition of 22 other attorneys general sued to stop the implementation of a new Trump administration policy that orders the withholding of trillions of dollars in funding that provides essential services to millions of Americans in every state. The new policy, issued by the President’s Office of Management and Budget (OMB) to all federal executive agencies, puts an indefinite pause on most federal assistance to states. This has already jeopardized state programs that provide critical health and childcare services to families in need, deliver support to public schools, combat hate crimes and violence against women, provide life-saving disaster relief to states, and more. Attorney General Platkin and the coalition of attorneys general are seeking a court order to immediately stop the enforcement of the OMB policy and preserve essential funding.

“This may be a game to President Trump and his Administration, but to New Jersey and states across the country, last night’s actions are causing serious, immediate harm,” said New Jersey Attorney General Platkin. “We won’t just stand by as the Trump Administration rips away access to healthcare, food, law enforcement funding, and so much more that hurts our residents most in need. We will keep fighting in federal court alongside our partners in states across the country until these critical funds are restored and this blatantly unconstitutional order is rescinded.”

“The Trump Administration’s directive to freeze federal grant funding across the board was poorly conceived and implemented and has already resulted in chaos across the country,” said Governor Phil Murphy. “This funding is crucial to the health, safety, and well-being of millions of Americans. All of us deserve better—from the police that would be defunded to the families who rely on aid to pay their bills. I stand with Attorney General Platkin and his fellow State Attorneys General who are swiftly taking legal action to protect our residents and ensure funding and services aren’t disrupted.”

The OMB policy, issued late on January 27, directs all federal agencies to indefinitely pause the majority of federal assistance funding and loans to states and other entities beginning at 5:00 pm today, January 28. As Attorney General Platkin and the coalition of attorneys general note in their lawsuit, OMB’s policy has already caused immediate 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 are jeopardized by OMB’s policy.

Attorney General Platkin and the coalition of attorneys general 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 hate crimes and violence against women, support community policing, and provide services to victims of crimes. In addition, the attorneys general note that the OMB policy would halt 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 Trump administration has attempted to clarify the scope and meaning of the OMB policy, states have already reported that funds have been frozen, jeopardizing services like Medicaid and support for students with disabilities across the country. As part of their lawsuit, Attorney General Platkin and the coalition of attorneys general argue that OMB’s policy violates the Constitution and the Administrative Procedure Act by imposing a 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 usurps Congress’s power to decide how federal funds are spent.

In addition to New Jersey Attorney General Platkin, the attorneys general of New York, California, Illinois, Rhode Island, Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont, Washington, Wisconsin, and the District of Columbia brought this lawsuit on behalf of their respective jurisdictions.

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