Attorneys general from Maryland and Washington, D.C. have joined others in filing a lawsuit against President Donald Trump’s administration. The aim is to halt the implementation of a policy that would withhold crucial federal funding.
Late on Monday night, the Office of Management and Budget (OMB) issued the policy, which was set to go into effect at 5 p.m. on Tuesday. Maryland’s Attorney General expressed concern that the policy announcement caused “immediate chaos and uncertainty” for millions of Americans.
According to the Associated Press, the policy, which will come into effect once the temporary block by a federal judge is lifted, will put a stop to federal loans and grants. These financial resources serve as a lifeline for local government, schools, and nonprofit organizations nationwide.
Maryland Attorney General Anthony Brown announced his decision to join a coalition of 22 attorneys who are suing to halt the policy, shortly after a federal judge blocked the implementation of the move.
“The policy would immediately jeopardize state programs that provide critical health and childcare services to families in need, deliver support to public schools, combat hate crimes and violence against women, provide life-saving disaster relief to states, and more,” Brown stated.
The coalition is seeking a court order to halt the enforcement of the OBM policy promptly and protect crucial funding.
According to the complaint, the following statement was made:
The OMB Directive … directs that the head of every executive branch department and agency “must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by” recent executive orders, “including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”
According to the complaint, the OBM Directive is in violation of the Administrative Procedure Act and is considered to be unconstitutional.
According to Brown, states had already reported that funds had been frozen, putting services at risk nationwide, just hours before the policy was scheduled to take effect.
The complaint argues that the portal for processing Medicaid Disbursement was not functioning properly in several Plaintiff States for hours. This is despite the OMB clarifying that the pause does not affect Medicaid funding.
The 22 attorneys general argue that without federal funding, their states will be unable to provide essential benefits, pay public employees, or continue with their governments’ crucial operations.
“The coalition argues that the president cannot decide to unilaterally override laws governing federal spending, and that OMB’s policy unconstitutionally overrides Congress’s power to decide how federal funds are spent,” Brown stated.