Courtroom gavel on wooden surface.
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States challenge Trump’s funding freeze

Democratic attorneys general from New York and California are suing the Biden administration over a funding pause they say illegally restricts billions in congressionally approved spending for energy and environmental programs.

Pamela King reports forE&E News.


In short:

  • New York Attorney General Letitia James and California Attorney General Rob Bonta are leading a lawsuit against the Office of Management and Budget (OMB) over a funding freeze tied to Trump administration policy goals.
  • The White House says the pause is temporary and does not violate the law, but legal experts argue it constitutes an illegal "impoundment" of funds appropriated by Congress.
  • The freeze applies to programs related to Trump’s executive orders on energy policy, international environmental agreements and diversity initiatives in government.

Key quote:

“There is no question this policy is reckless, dangerous, illegal and unconstitutional.”

— Letitia James, New York attorney general

Why this matters:

The decision to withhold congressionally approved funding could have far-reaching consequences for environmental and energy programs across the country. These funds often support regulatory enforcement, public services and research aimed at mitigating climate change and ensuring a stable energy supply. Delays or cuts to such funding could weaken oversight of pollution controls, slow renewable energy projects and disrupt efforts to modernize infrastructure in response to climate risks.

At stake is not just the immediate impact on programs but the balance of power between the three branches of the federal government. A ruling in favor of withholding funds could embolden current and future administrations to selectively enforce congressional spending decisions, reshaping federal priorities and power in ways that extend far beyond the environment and energy sectors.

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