Several Democratic states have signaled imminent legal action to block a Trump administration order directing federal agencies to pause the disbursement of loans and grants while the government reviews whether its spending aligns with President Trump’s agenda.
Senate Minority Leader Chuck Schumer (D-N.Y.) announced the impending legal action, led by New York Attorney General Letitia James (D), at a press conference Tuesday morning where he decried Trump’s order as “lawless, dangerous, destructive, cruel.”
“They’re going to court right away on this horror,” Schumer said. “This plain and simple, this is Project 2025. Project 2025 by another name.”
James, who has taken Trump himself to court for business fraud and won a multimillion-dollar judgment against him, wrote on social media that her office would take “imminent legal action” against Trump’s “unconstitutional pause” on federal funding. The Hill has requested additional details from her office.
Late Monday, the Office of Management and Budget issued a memo directing federal agencies to temporarily pause “all activities related to obligation or disbursement of all Federal financial assistance.”
“This temporary pause will provide the Administration time to review agency programs and determine the best uses of the funding for those programs consistent with the law and the President’s priorities,” said Matthew Vaeth, OMB’s acting director.
The New York Times reported that California, Illinois, New Jersey, Rhode Island and Massachusetts — all states with Democratic attorney generals — are also expected to join the suit challenging the order.
California Attorney General Rob Bonta (D) wrote on the social platform X early Tuesday that the state was “reviewing” the directive and is prepared to “protect” Californians from Trump’s “reckless and dangerous actions.”
New Jersey Attorney General Matt Platkin (D) also said Tuesday that the order would “greatly harm New Jerseyans and raise costs for working families,” indicating the state was reviewing the order.
And Massachusetts Attorney General Andrea Joy Campbell signaled “prompt action” to stop the order from going into effect, describing it as a “reckless abuse of power.”
The Hill has reached out to each state signaling potential suits.
The pause goes into effect at 5 p.m. on Tuesday, according to the memo, which was reviewed by The Hill. OMB may grant exceptions for certain awards on a case-by-case basis, the memo states.
Meanwhile, a group of nonprofits already filed a lawsuit over the grant freeze, including groups who receive such funding.
