New York Attorney General Letitia James has announced an imminent lawsuit against the Trump administration, challenging its decision to freeze federal grant programs.
James made the announcement Tuesday, vowing legal action alongside other Democratic attorneys general to block what she called a reckless and unconstitutional move.
Federal Funding Freeze Sparks Legal Showdown
The lawsuit follows a Monday memo from the White House budget office, ordering a temporary freeze on all federal grants and loans. The decision, which could impact trillions in government spending, took effect Tuesday at 5 p.m. ET. While programs like Social Security, Medicare, welfare, and direct individual assistance are excluded, critics argue that the freeze could cripple essential community services.
James took to X (formerly Twitter), slamming the administration’s actions:
“This administration’s pause on federal funding is reckless and dangerous. Programs in communities across the entire nation depend on this funding to support our families, and this action is only going to hurt them.”
At a Tuesday press conference, James reiterated her stance, stating:
“Not only does this Administration’s new policy put people at risk, but it is plainly unconstitutional.”
Trump Administration Defends the Decision
White House Press Secretary Karoline Leavitt dismissed concerns, insisting the freeze is not a “blanket pause” and won’t affect direct assistance programs. However, she justified the funding halt by saying:
“It means no more funding for illegal DEI programs; it means no more funding for the green new scam…It means no more funding for transgenderism and wokeness across our federal bureaucracy and agencies.”
Bipartisan Reactions to Federal Grant Freeze
The grant freeze has sparked a wave of political backlash, with lawmakers on both sides weighing in.
Senator John Fetterman (D-PA) raised concerns about the immediate impact on local services, posting on X:
“My office just received calls from over a dozen PA organizations, including one that serves both [red and blue] low-income families, and their access to funds through the Federal Payment Management System has been cut off. These services, including Medicaid, are critical to our most vulnerable.”
Senator Bernie Sanders (I-VT) called the move “a dangerous step towards authoritarianism”, warning that it could harm children, seniors, and low-income families.
Meanwhile, Charlie Kirk, founder of Turning Point USA, defended the decision, accusing the media of fearmongering:
“Social Security is not affected. Medicare isn’t affected. Food stamps, pensions, and the rest are not affected. There’s only uncertainty in this room, amongst the media.”
What’s Next?
As legal battles loom, the Trump administration insists that Medicaid payments remain unaffected, despite reports of a portal outage. Leavitt reassured the public that the issue would be resolved soon and payments are still being processed.
With the New York Attorney General’s lawsuit pending, the political and legal fallout from the federal grant freeze is just beginning.