By: Richard L. Smith
A coalition of 23 state attorneys general, led by New Jersey Attorney General Matthew J. Platkin, has filed a lawsuit to block a new Trump administration policy that indefinitely halts trillions of dollars in federal funding to states.
The policy, issued by the President’s Office of Management and Budget (OMB), threatens crucial programs that support public health, education, law enforcement, disaster relief, and other essential services.
According to information released by the New Jersey Attorney General’s Office, the directive, announced late on January 27, instructs all federal agencies to pause the majority of federal aid to states and other entities, with the freeze taking effect at 5:00 p.m. on January 28.
The lawsuit, filed by the attorneys general, seeks an immediate court order to prevent the enforcement of the policy and protect the critical funding states rely on.
Attorney General Platkin strongly condemned the decision, stating, “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. We won’t stand by while the Trump Administration rips away access to healthcare, food, law enforcement funding, and more—harming the most vulnerable in our communities. Alongside our partners in states across the country, we will fight in federal court to ensure these critical funds are restored and this blatantly unconstitutional order is rescinded.”
New Jersey Governor Phil Murphy also criticized the policy, calling it a reckless move that disrupts vital services for millions of Americans.
“The Trump Administration’s directive to freeze federal grant funding across the board was poorly conceived and implemented, creating chaos nationwide,” Murphy said.
“This funding is crucial to the health, safety, and well-being of millions of Americans. From defunding law enforcement to cutting off assistance for struggling families, this decision has dire consequences. I stand with Attorney General Platkin and his fellow attorneys general in taking swift legal action to protect our residents.”
The attorneys general argue that this sweeping funding freeze has already created uncertainty and hardship.
Essential community health centers, addiction and mental health treatment programs, disability services, and other vital healthcare initiatives could see immediate impacts.
The policy also threatens federal grants that support law enforcement efforts, including programs aimed at combatting hate crimes, preventing violence against women, and funding community policing.
Disaster relief funds are also at risk. The lawsuit highlights that states like California and North Carolina, still recovering from devastating wildfires and floods, rely on FEMA grants to rebuild homes and infrastructure.
Freezing these funds, the attorneys general contend, puts thousands of families in jeopardy.
While the Trump administration has attempted to clarify aspects of the policy, states have already reported that funds are being withheld, potentially affecting Medicaid, education programs for students with disabilities, and other crucial services.
The lawsuit argues that the OMB directive is unconstitutional, violating the Administrative Procedure Act and undermining Congress’s authority over federal spending.
The attorneys general maintain that the president does not have the unilateral power to override laws governing how federal funds are allocated.
The lawsuit has been filed by attorneys general from New Jersey, 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.