Rhode Island Attorney General Peter F. Neronha today announced that he is co-leading a coalition of 23 attorneys general in a lawsuit aimed at halting the implementation of a new policy from the Trump administration. The policy, issued by the President’s Office of Management and Budget (OMB), directs an indefinite pause on the majority of federal assistance to states—a move that could have far-reaching consequences for essential state programs.
The lawsuit, filed in the United States District Court for the District of Rhode Island, comes in response to an OMB directive issued late on January 27. The directive, set to take effect on January 28, mandates the suspension of most federal funding and loans to states and other entities, beginning at 5:00 pm. The policy threatens to disrupt critical services such as healthcare, childcare, disaster relief, and law enforcement support across the country.
Attorney General Neronha voiced strong opposition to the policy, warning of its potentially catastrophic impact. “Any pause to federal funding programs would have immediate and catastrophic effects for Rhode Islanders and Americans everywhere,” he said. “Such a pause, which OMB announced last night without a definitive end, would result in financial chaos for everyday programs on which people rely to survive, including programs related to health care and food for children.”
The OMB’s decision to freeze federal grants threatens to destabilize vital programs that support public safety, education, transportation, and environmental protection. Programs designed to aid families in need, combat hate crimes, provide mental health services, and deliver life-saving disaster relief would all be at risk.
“States everywhere receive billions in federal grants that support public safety, education, transportation, the environment, and more,” Neronha continued. “If this funding pause is allowed, its devastating impact will be widespread and dangerous, as these programs touch many Americans in one way or another, whether they realize it or not.”
Neronha and the coalition also highlighted the dangers posed to law enforcement. The freeze on federal funding would halt the U.S. Department of Justice’s initiatives to combat hate crimes, violence against women, and support community policing efforts. Additionally, critical infrastructure projects like the rebuilding of the Washington Bridge in Rhode Island could be left without necessary funding.
The lawsuit also contends that the OMB policy violates the Constitution and the Administrative Procedure Act, arguing that it unilaterally overrides laws governing federal spending without regard for the established procedures. The attorneys general assert that the president does not have the authority to halt the flow of federal funds without congressional approval, claiming the policy unconstitutionally infringes upon Congress’s power to allocate resources.
While the Trump administration has made efforts to clarify the scope of the OMB policy, states have already reported the freezing of vital funds, with programs like Medicaid and addiction treatment services in jeopardy.
This legal action is supported by the attorneys general of Rhode Island, New York, California, Illinois, Massachusetts, and New Jersey. The lawsuit has also garnered the support of the attorneys general from Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont, Washington, Wisconsin, and the District of Columbia.
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