TRENTON, NJ — New Jersey Attorney General Matthew J. Platkin, along with a coalition of 22 other state attorneys general, has filed a lawsuit to block a Trump administration policy that indefinitely pauses trillions of dollars in federal assistance to states, jeopardizing critical services nationwide.
The directive, issued by the Office of Management and Budget (OMB) on January 27, instructs federal agencies to halt most funding and loans to states effective January 28 at 5:00 p.m. Attorney General Platkin and his counterparts argue the move is unconstitutional and violates federal spending laws, endangering programs that provide healthcare, disaster relief, law enforcement support, and education funding.
“This may be a game to President Trump and his Administration, but to New Jersey and states across the country, last night’s actions are causing serious, immediate harm,” Platkin said. “We won’t just stand by as the Trump Administration rips away access to healthcare, food, law enforcement funding, and so much more that hurts our residents most in need.”
Governor Phil Murphy also condemned the funding freeze, calling it “poorly conceived and implemented” and warning that it would disrupt essential services, from community policing to disaster aid.
The lawsuit argues that the OMB directive unlawfully overrides congressional authority over federal spending and violates the Administrative Procedure Act. While the Trump administration has attempted to clarify the policy, states have already reported frozen funds, with Medicaid, disability support programs, and FEMA disaster relief efforts at immediate risk.
The case, which could have widespread implications for state budgets and federal-state relations, will now proceed in federal court.
