On June 24, 2025, New Jersey Attorney General Matt Platkin filed suit with 20 other state attorneys general and the governor of Pennsylvania to stop the Trump administration from unlawfully terminating billions of dollars of federal grant funding to states. Since the beginning of the administration, multiple federal agencies have exploited a single Office of Management and Budget (OMB) regulatory clause by purporting that the phrase “no longer effectuates … agency priorities” provides federal agencies the authority to withhold federal funds that Congress appropriated and the agency had already granted to states.

By means of this single phrase, Trump has terminated billions of dollars in state grants that combat violent crime and protect public safety, equip law enforcement, educate students, safeguard public health, protect clean drinking water, conduct medical research, address food insecurity, and provide unemployment benefits to workers, among many other funding goals. Cutting off funding makes states less safe and directly harms state residents. The harm continues, as new termination notices are issued to states every week.

Use of the “agency priorities” provision to terminate federal grants violates numerous laws. The OMB’s own interpretation of the clause does not allow agencies to terminate grants using a post-hoc change in priorities. In addition, the arbitrary and capricious manner in which the government has cut off funding is a violation of the Administrative Procedure Act. Agencies lack the power to cut off Congressionally appropriated funds arbitrarily and without notice, as a constitutional matter.

The plaintiff states are seeking a declaratory judgment that the “agency priorities” phrase cannot be used to terminate grants based on priorities identified after the grants were issued or a permanent injunction prohibiting the administration from terminating awards on the same basis.

The Trump Administration and DOGE have mounted an unprecedented campaign to terminate billions of dollars of federal funding to states that supports critical programs for our residents. That reckless slash-and-burn campaign has rested on the flimsiest of legal justifications. And it has continued unabated for months—which is why we’re taking the fight to the Trump Administration to stop these reckless and illegal cuts from continuing. We’re proud to lead this lawsuit to prevent the Trump Administration from deciding on a whim and without any notice that it no longer wishes to provide states with the funding Congress has promised. It is unconscionable that this Administration has illegally stripped our state of funding Congress authorized to protect public safety, to support lifesaving medical research, to ensure that our kids can access clean water and air, and so much more. We won’t let that continue to happen. We’ll see the Trump Administration in court. Attorney General Matt Platkin