Before Federal District Court Judge Loren AliKhan ordered a temporary halt to the Trump Administration’s shutdown on Jan. 28 at 5 p.m. of up to $3 trillion in federal assistance funding, New York Attorney General Letitia James and California Attorney General Rob Bonta had led a coalition of 23 attorneys general in filing a lawsuit against the administration to block the action. That was just part of the swift reaction to the memo issued by the White House Office of Management and Budget (OMB) that ordered the federal funding stopped.
The outcry became so strong that on Jan. 29, the Trump Administration’s OMB issued a new memorandum rescinding its initial memorandum on halting federal spending. Whether the OMB will reissue the initial memorandum at a later date or try to make multiple less-sweeping federal funding cuts instead of the original massive cut remains to be seen. While the White House announced the OMB’s cancellation memo, there was nothing said to indicate that underlying executive orders from President Trump cutting specific programs had been rescinded.
Even before it was due to become effective, the OMB’s order threw state programs into chaos and created uncertainty. Impacted programs include disaster-relief funding necessary for Los Angeles’ recovery from recent wildfires, as well as public health, education, public safety, and government programs. Medicaid funding was halted even before the planned implementation time.
“The Trump Administration is recklessly disregarding the health, wellbeing, and public safety of the people it is supposed to serve,” Bonta said. “This directive is unprecedented in scope and would be devastating if implemented.”
In addition to New York and California, the attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, North Carolina, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia are plaintiffs in the lawsuit.
In the lawsuit, the attorneys general argue that the administration is violating the U.S. Constitution, violating the Administrative Procedure Act, and is arbitrary and capricious.
New York State Sen. Shelley Mayer said she heard that online computer systems through which Medicaid payments are received by New York state were blocked when the order was issued.
New York Gov. Kathy Hochul said, “The federal government committed this money to New York — they must keep their end of the bargain. New York’s Republican leaders in Congress must step up and use their influence to protect our state, our people, and our federal funding.”
Hochul said that she was working with Attorney General James on her litigation to ensure the funds will be delivered as required by law.
James said, “Millions of Americans rely on federally funded programs every day to get the health care they need, support their families, and stay safe in their communities. Already, this policy has unleashed chaos and uncertainty, with law enforcement halting drug enforcement efforts, Medicaid portals shutting down, and other critical services being thrown into disarray. I am leading a coalition of attorneys general to uphold the law and ensure that essential services in states across our country can continue.”
The lawsuit argues that jeopardizing federal funds paid to states will put Americans in danger by depriving law enforcement of much-needed resources. The plaintiffs foresee the Trump’s Administration’s policy forcing a pause for funding of 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 coalition of attorneys general notes 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.
