New York Attorney General Letitia James announced a new “imminent” lawsuit against the Trump administration on Tuesday regarding the freezing of federal grant programs.
Newsweek reached out to the White House via email on Tuesday for comment.
Why It Matters
James has a history of challenging President Donald Trump, most notably by leading the lawsuit against his company for allegedly misleading insurers and banks by overvaluing assets ahead of his 2024 presidential election campaign.
On Monday, James posted to X, formerly Twitter, regarding a report by The Washington Post that the Trump Administration paused all federal grants.
“This administration’s pause on federal funding is reckless and dangerous,” James wrote. “Programs in communities across the entire nation depend on this funding to support our families, and this action is only going to hurt them.”
Trump’s White House budget office ordered a temporary freeze on all federal grants and loans in a memo on Monday. The decision could potentially impact trillions in government spending and halt public programs. The freeze excludes programs like Social Security, Medicare, welfare and direct individual assistance and is set to take effect Tuesday at 5 p.m. ET.
What To Know
In a news conference on Tuesday, James announced the impending lawsuit against the Trump administration along with other Democratic attorneys general.
“Not only does this Administration’s new policy put people at risk, but it is plainly unconstitutional,” James said.
Trump’s White House Press Secretary Karoline Leavitt also spoke about the administration’s decision to freeze federal grants during a press briefing on Tuesday, saying: “This is not a blanket pause on federal assistance and grant programs from the Trump administration.”
“Individual assistance, that includes—I’m not naming everything that’s included but just to give you a few examples—Social Security benefits, Medicare benefits, food stamps, welfare benefits, assistance that is going directly to individuals will not be impacted by this pause,” Leavitt assured to the press.
“I want to make that very clear to any Americans who are watching at home,” Leavitt said. “It means no more funding for illegal DEI programs; it means no more funding for the green new scam…It means no more funding for transgenderism and wokeness across our federal bureaucracy and agencies, no more funding for green new deal social engineering policies.”
New York Attorney General Letitia James is seen speaking during a press conference at the offices of the Attorney General on January 08, 2025, in New York City. (Photo by Michael M. Santiago/Getty Images)
What People Are Saying
Democratic Senator John Fetterman of Pennsylvania said on X: “I am closely monitoring the repercussions in PA as a result of the federal funding pause. My office just received calls from over a dozen PA organizations, including one that serves both [red and blue] low-income families, and their access to funds through the Federal Payment Management System have been cut off. We’re also aware of reports of PA’s Medicaid portal being down. These services, including Medicaid, are critical to our most vulnerable and I am calling on @POTUS to immediately restore access.”
Independent Senator Bernie Sanders of Vermont said on X: “The Trump Administration’s action to suspend all federal grants & loans will have a devastating impact on the health and well-being of millions of children, seniors on fixed incomes, and the most vulnerable people in our country. It is a dangerous move towards authoritarianism.”
Charlie Kirk, CEO and founder of conservative Turning Point USA said on X: “Karoline Leavitt explodes the ridiculous fearmongering in the media about Trump’s pause on federal grants to various agencies and institutions. Social Security is not affected. Medicare isn’t affected. Food stamps, pensions, and the rest are not affected. ‘There’s only uncertainty in this room, amongst the media.'”
What Happens Next
Leavitt said the White House is aware that the portal on the Medicaid website is down adding, “We have confirmed no payments have been affected—they are still being processed and sent. We expect the portal will be back online shortly.”
Update 01/28/25 4:20 p.m. ET: This article has been updated with additional information.
