Sharing the Facts About Unlawful Attempts to Freeze Federal Funds

In the American system, the federal government works in partnership with states on behalf of the people. States receive funding for essential services through appropriations from Congress, which holds the federal power of the purse. Since taking office, however, President Trump has overstepped his authority, repeatedly attempting to withhold funding from states. He does not have that power.

President Trump, on his first day in office, issued a series of executive orders attempting to freeze federal funding. Then, on Jan. 27, the Office of Management and Budget issued a memo that halted money flowing to the states for a wide array of critical programs. This has been successfully challenged in court by a group of attorneys general from 22 states and the District of Columbia. The courts have repeatedly ordered the administration to cease its attempts to stop funding for essential services.

Nevertheless, the initial funding freeze has led to weeks of uncertainty and disruption to services that support everyday Americans—schoolchildren, farmers, veterans, and sexual assault victims. And despite the courts ordering the funds to be restored, some funding remains unavailable to states, like disaster relief to support communities addressing wildfires, flooding, and emergency preparedness.

The Trump administration has since expanded its tactics to weaponize the withholding of state funding. In some cases, it is only making federal funds available to state and local governments that adhere to specific administration policies. This has resulted in funding threats to programs that train farmers who put food on our kitchen tables, for example, and to programs that keep millions of people safe on public transit as they go to work.

In other cases, the administration is targeting specific types of grants through the federal agencies that distribute them. These efforts have impacted funding urgently needed to train teachers, manage infectious diseases, provide addiction services, research ongoing energy projects, and fight homelessness.

On April 1, 23 state attorneys general sued the federal government to challenge the $12 billion funding cut to state health services.

The continuing freeze of federal assistance has left Americans without critical services—including Medicaid, job training, and unemployment benefits—and has left state officials without the clarity they need to plan for the future.

The courts have repeatedly held that the Trump administration does not have the power to freeze funds Congress has already allocated to the states.

On Feb. 10, U.S. District Judge John J. McConnell Jr. ordered federal agencies to “immediately restore withheld funds,” and to comply with a prior court order. He found that the administration violated a previously issued temporary restraining order (TRO). McConnell wrote that the sweeping freeze of federal funds is “likely unconstitutional and has caused and continues to cause irreparable harm to a vast portion of this country.”

The order, which enforces McConnell’s previous mandate, came amidst ongoing legal challenges to the attempted funding freeze.

While two separate TROs have been issued against the funding freeze, the Trump administration continues to defy court orders and withhold certain funds. Impacted funds were previously authorized and allocated to the states by Congress under its power to determine how federal funds are spent. Courts have now held that the executive branch does not have the legal authority to freeze this federal funding. On March 6, McConnell emphasized that point in a new order that continues to block the administration from freezing funds.

“The interaction of the three co-equal branches of government is an intricate, delicate, and sophisticated balance—but it is crucial to our form of constitutional governance,” he wrote. “Here, the Executive put itself above Congress.”

The Trump administration’s attempt to circumvent Congress, refusal to comply with court orders, and false and concerning statements that the judicial system cannot check executive power present a direct threat to our democracy.

Here are some key takeaways about the harms Americans are facing from the administration’s ongoing interference with federal funding:

• Everyday Americans are paying the price for the administration’s overreach.
  • Parents are worried about losing childcare due to Head Start cuts, community health clinics are laying off staff, job training programs are being canceled, Americans’ energy costs are in jeopardy, and farmers are watching bills pile up—all because of an unconstitutional power grab.
  • From big cities to rural areas, Americans of all stripes are being impacted.
  • These spending cuts only exacerbate the financial strain felt by so many as costs rise amid economic uncertainty.
• State officials are on the front lines of this fight, on behalf of the people.
  • They were elected to focus on serving the people of their states, not be bogged down with responding to unlawful actions by the federal government.
  • The unauthorized cuts could rip funds away from states and limit their ability to protect and serve the people they represent.
  • They’re now stepping up to defend the rule of law in our country and ensure that people continue to benefit from critical programs and services.

Here are some key takeaways about the Trump administration’s overreach that’s disrupting funding appropriated by Congress:

• Courts have repeatedly held that the executive branch may not continue their attempt to freeze federal funding. They don’t have that authority.
  • Congress, not the executive branch, allocates federal funding.
  • Despite court orders, congressionally approved federal assistance is still being withheld from organizations and state governments.
• The executive branch cannot disregard and defy the legislative and judicial branches.
  • The executive branch must respect Congress’s authority to determine how federal funds are spent. And they must comply with orders from federal judges.
  • At the same time, the president and vice president have made concerning statements about judges not being allowed to curtail the president that should raise the alarm about their intentions.
• All of our leaders have a role to play in making government work for the American people. That includes everyone from the president and his appointees to the officials who govern our states and communities.
  • We have a constitutional system of checks and balances in place to stop any one branch of government from seizing the powers given to another branch. That’s how we make sure our government is delivering for the people in every community. But the system only works when people in positions of power respect checks and balances.