Court upholds order blocking Trump administration freeze on federal funding to states

Attorney General Letitia James
Attorney General Letitia James
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New York Attorney General Letitia James said on Mar. 17 that the U.S. Court of Appeals for the First Circuit has largely upheld a lower court order blocking the Trump administration’s attempt to freeze trillions of dollars in federal funding to states.

The ruling is significant because it prevents the withholding of essential funds that support health care, disaster response, public safety, and other vital services. The decision affects millions of Americans who rely on these programs.

James said, “This decision is a clear reminder that the president cannot treat congressionally-approved funding like a switch he can flip on and off. For more than a year, the Trump administration has repeatedly tried to freeze critical funding that states rely on to serve their communities, and once again the courts have rejected that unlawful power grab.”

She added, “By attempting to cut off funding for health care, disaster response, public safety, and other essential services, the administration put millions of Americans at risk. This ruling is a victory for families and communities, and I will continue fighting to ensure New Yorkers receive the resources that Congress awarded.”

In January 2025, James led a coalition of 22 attorneys general in filing suit against a new federal policy designed to withhold large amounts of essential state funding. A preliminary injunction was granted in March 2025 blocking this policy; now, the appellate court has affirmed much of that order.

The New York Attorney General operates as a public law enforcement and legal advocacy agency for New York according to its official website. The office promotes social justice and community well-being through civil rights enforcement and consumer advocacy according to its official website. It also protects New Yorkers by ensuring public safety, defending civil rights, upholding consumer protections, and preserving the environment according to its official website.

Letitia James heads the New York Attorney General’s office according to its official website, which operates regional offices across the state addressing local legal issues according to its official website. Services provided include consumer fraud investigations, charities oversight, and tenant dispute mediation according to its official website.



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