Multistate lawsuit challenges Trump administration’s cuts to state federal funding

Governor Phil Murphy - Official Website of Phil Murphy
Governor Phil Murphy - Official Website of Phil Murphy
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Attorney General Matthew J. Platkin announced a legal challenge against the Trump Administration, leading a coalition of 21 Attorneys General and Pennsylvania in a lawsuit. The suit targets the administration’s efforts to terminate federal funding using a regulation clause that allows termination if funding “no longer effectuates … agency priorities.”

Platkin criticized the administration’s actions, stating, “The Trump Administration and DOGE have mounted an unprecedented campaign to terminate billions of dollars of federal funding to states that supports critical programs for our residents.” He added, “We’re proud to lead this lawsuit to prevent the Trump Administration from deciding on a whim and without any notice that it no longer wishes to provide states with the funding Congress has promised.”

Since January 20, under President Trump’s direction and through the Department of Government Efficiency (DOGE), thousands of grants have been revoked by federal agencies. This has impacted various programs in New Jersey, including public safety initiatives, medical research, food security in schools, access to clean water, unemployment systems modernization, and internet access expansion.

The lawsuit contends that this move is a significant departure from past practices where agencies did not cancel grants due to shifting priorities mid-use without prior notice. An executive order issued by President Trump in February directed mass grant terminations based on changing agency priorities.

The coalition seeks clarity on the regulation’s scope since states receive hundreds of billions annually at risk due to this rule. They are filing against OMB and multiple federal departments like Agriculture, Commerce, Defense, Homeland Security, Justice, Labor, State as well as agencies like EPA and FEMA.

The suit is filed in Massachusetts District Court aiming for a declaratory judgment regarding the authority claimed by these regulations or alternatively vacating decisions based on purported priority shifts.

In New Jersey, Solicitor General Jeremy Feigenbaum leads handling this matter along with other legal officials. Other participating states include Massachusetts, New York, Arizona among others.



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