States revolt against Trump’s funding freeze — New York leads, others join in Withholding federal payments

Donald Trump is facing increasing challenges from Democratic-led states over the reported slash by the US President in federal grant funding. A few blue states such as New York, Maryland, Connecticut, and Wisconsin have introduced bills to withhold federal payments, as per a report.

Democrat States vs Donald Trump

New York, Maryland, Connecticut, and Wisconsin's bills have mandated the respective state bearers to withhold payments meant for the Federal government, NBC News reported.


Democrats in the Washington are reportedly also preparing similar bills. Democrat Congressman from Wisconsin state has introduced two bills, aiming to compel the Trump administration to release the stipulated grant.

Donald Trump Administration Faces Lawsuit

Earlier on June 24, Democratic state attorneys general filed a lawsuit on Tuesday asking a judge to declare that a key tool Republican President Donald Trump's administration has relied on to cancel federal grants is being used unlawfully to slash billions of dollars in funding.

In a lawsuit, opens new tab filed in Boston federal court, attorneys general from 20 states and the District of Columbia joined with Pennsylvania's governor to take aim at the administration's reliance on a regulation the White House budget office adopted during Trump's first term that strengthened the ability of agencies to cancel grant awards.

Controversial White House Regulation

That regulation, which the White House Office of Management and Budget adopted in 2020, says agencies can terminate a grant if it "no longer effectuates the program goals or agency priorities."

The Trump administration has relied on that language to cancel billions of dollars in funding to states and nonprofits in a bid to roll back federal backing for various projects, including those it sees as supporting diversity, equity and inclusion and climate change preparation.

It did so with the aide of the Department of Government Efficiency, which was spearheaded by billionaire Elon Musk. Numerous lawsuits have been filed challenging those grant terminations.

FAQs

Q1. Who is President of USA?
A1. President of USA is Donald Trump.

Q2. Which states have introduced bills to withhold federal payments?
A2. New York, Maryland, Connecticut, and Wisconsin's bills have mandated the respective state bearers to withhold payments meant for the Federal government, NBC News reported.