Attorney General Bonta Files Lawsuit, Seeks Immediate Court Order to Block Sweeping OMB Directive Freezing up to $3 Trillion in Vital Federal Funding
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SACRAMENTO — California Attorney General Rob Bonta today, along with New York Attorney General Letitia James, led a coalition of 23 attorneys general in filing a lawsuit to block implementation of a memo by the Office of Management and Budget (OMB) threatening to freeze up to $3 trillion in federal assistance funding effective at 2pm PT / 5pm ET today. The attorneys general are seeking a temporary restraining order to block the memo from taking effect, citing immediate harms to their states, which stand to lose billions in funding essential for the administration of vital programs that support the health and safety of their residents. Already, the order has thrown state programs into chaos and created uncertainty around their administration. 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.
“The Trump Administration is recklessly disregarding the health, wellbeing, and public safety of the people it is supposed to serve,” said Attorney General Bonta. “This directive is unprecedented in scope and would be devastating if implemented. Already, it has created chaos and confusion among our residents. I will not stand by while the President attempts to disrupt vital programs that feed our kids, provide medical care to our families, and support housing and education in our communities. Instead of learning from the defeats of his first Administration, President Trump is once again plowing ahead with a damaging – and most importantly, unlawful – agenda. I’m proud to co-lead a coalition of attorneys general in taking him to court.”
The OMB directive freezing federal funding less than 24 hours after it was announced will cause immediate and irreparable harm to the states every day that it is in effect — in the form of millions of dollars in funds and mass regulatory chaos. Many states could face immediate cash shortfalls, making it difficult to administer basic programs like funding for healthcare and food for children and to address their most pressing emergency needs. This will result in devastating consequences for California in particular, given the uncertainty around continued disbursement of FEMA funding that is essential for recovery from the Los Angeles wildfires, which have caused an estimated $150 billion in economic losses.
In the lawsuit, the attorneys general argue that the OMB directive violates the U.S. Constitution, violates the Administrative Procedure Act, and is arbitrary and capricious. Specifically, the attorneys general argue that Congress has not delegated any unilateral authority to OMB to indefinitely pause all federal financial assistance under any circumstance, irrespective of the federal statutes and contractual terms governing those grants, and without even considering them. The directive also violates the “separation of powers” between Congress and the Executive Branch because the Spending Clause of the U.S. Constitution gives the power of the purse exclusively to Congress. The attorneys general seek a temporary restraining order to block the directive from being implemented.
Attorney General Bonta is joined by the attorneys general of New York, 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 in filing the lawsuit.
A copy of the lawsuit and TRO will become available here.