Shapiro files lawsuit challenging federal funding freeze

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Challenging the Trump Administration’s freeze of federal funding, Gov. Josh Shapiro has filed a lawsuit so Pennsylvania state agencies can access Congressionally appropriated funding. 

The U.S. Constitution states that federal agencies do not have the power to suspend states’ access to money that Congress appropriated or to impose new conditions on money already appropriated and obligated. 

Despite multiple court orders to release federal funds for clean energy jobs, environmental and health protections, plugging old leaky gas wells, cutting energy costs for families, and other programs, Pennsylvania agencies are unable to access $1.2 billion in federal funding. An additional $900 million requiring an undefined review by federal agencies before it can be drawn down. 

Shapiro is taking legal action to restore access to funding. 

“The federal government has entered into a contract with the Commonwealth of Pennsylvania, promising to provide billions of dollars in Congressionally-approved funding that we have committed to serious needs – like protecting public health, cutting energy costs, providing safe, clean drinking water, and creating jobs in rural communities,” Shapiro said in a statement. “With this funding freeze, the Trump Administration is breaking that contract – and it’s my job as Governor to protect Pennsylvania’s interests. 

“Over the past two weeks, my team and I have engaged with our Congressional delegation to try to restore access to all the federal funding Pennsylvania has been promised under law – but despite those efforts, state agencies remain unable to draw down these critical dollars. While multiple federal judges have ordered the Trump Administration to unfreeze this funding, access has not been restored, leaving my administration with no choice but to pursue legal action to protect the interests of the commonwealth and its residents,” Shapiro added. 

According to a release, commonwealth agencies realized that billions in federal funding appropriated by Congress to Pennsylvania were no longer accessible following the White House Office of Management and Budget issuing a directive on Jan. 27. Federal agencies suspended access to billions of dollars in funding without supplying a plausible explanation as to why certain funds are being suspended, giving any consideration to the harm their action would cause, or considering how commonwealth agencies have relied on receiving that committed funding, per the release. 

The Shapiro Administration has worked with its federal partners and Pennsylvania’s Congressional delegation to fully restore access to these funds. Multiple federal judges have ordered the Trump Administration to unfreeze this funding. Despite multiple court orders, over $1.2 billion in federal funding owed to Pennsylvania agencies remains suspended – and more than $900 million in funding is now marked as requiring further (but unarticulated) federal agency review before reimbursement requests can be approved. 

Commonwealth agencies cannot draw from certain federal accounts, but they incur debts and obligations in federally approved projects that the Trump Administration is refusing to reimburse, per the release. 

Pennsylvania-based initiatives jeopardized by the federal funding freeze include reclaiming abandoned mine land, capping and plugging orphan wells, and lowering consumer costs. The funding freeze has also restricted access to funding that would help plug more than 500 orphaned and abandoned wells that are releasing toxic chemicals in Pennsylvania communities, as well as funding that would help up to 28,000 Pennsylvania households lower their utility bills. 

Shapiro’s lawsuit has drawn support from across the state. 

Evergreen Action Deputy State Policy Director Julia Kortrey said Shapiro is standing up for Pennsylvanians. 

“The governor is demanding the Trump administration follow the law and release the $1.2 billion in critical federal funds unlawfully blocked – along with the additional $900 million requiring an undefined review by federal agencies,” said Kortrey. “The deliberate withholding of these congressionally authorized investments is already causing real harm to real people.” 

Kortrey said critical programs to lower electricity costs for families and businesses through solar and energy efficiency updates are being stalled, along with efforts to protect Pennsylvanians from poisonous chemicals by capping and plugging thousands of abandoned gas wells. She added that nearly $400 million dedicated to modernizing Pennsylvania’s industrial sector to boost economic competitiveness and create thousands of jobs has also been put on hold. 

“Pennsylvania and its communities, businesses, and local governments must regain access to their funds immediately and be freed from this chaos and uncertainty,” said Kortrey. “We are grateful for the governor’s leadership and hope these critical funds are soon able to reach the people who need them most.” 

Pennsylvania’s Clean Air Council said Trump has barred access to funds allocated to support clean energy jobs, environmental and health protections, plugging old leaky gas wells, cutting energy costs for families, along with additional numerous critical programs. 

“The Trump administration has been committing theft at a grand scale, no different than if Washington told your bank to freeze you out of your checking account,” said Clean Air Council Executive Director Alex Bomstein. “Pennsylvanians pay taxes to the federal government and expect services in return. 

“Blocking critical programs such as ones that ensure safe drinking water for Pennsylvania residents is appalling and unconstitutional. We applaud the governor for taking action to protect Pennsylvanians and the programs they rely on daily.” 

Said Tom Schuster, director of the Sierra Club Pennsylvania Chapter, “Donald Trump and Elon Musk are attempting to shred the Constitution right now by illegally withholding funds that Congress appropriated for hundreds of programs, a move that threatens to wreak havoc across Pennsylvania. 

“Thankfully, Governor Shapiro is going to bat for us, fighting to preserve access to more than $2 billion that Congress intended for the commonwealth… Trump’s move jeopardizes critical environmental restoration projects and potentially thousands of jobs. Above all, though, this is about the rule of law, and the separation of powers that has kept our democracy going for nearly 250 years. We applaud Governor Shapiro for standing up for the Constitution and fighting back against this brazen power grab on behalf of all Pennsylvanians.”