HARRISBURG, Pa. — Pennsylvania Governor Josh Shapiro has initiated a lawsuit against federal agencies associated with former President Donald Trump, claiming they are unlawfully withholding billions of dollars in federal assistance that had already been sanctioned by Congress.
Despite federal courts having dismissed the Trump administration’s extensive moratorium on federal funding previously, Shapiro’s legal team contends that the Trump administration is still disregarding judicial orders that mandate the restoration of access to the frozen funds.
The lawsuit has been lodged in federal court in Philadelphia, where it describes the actions of these federal bodies as “flagrantly lawless,” asserting that the agencies lack the legal authority to independently refuse to allocate congressional appropriations over policy disagreements.
According to Shapiro’s attorneys, the federal agencies have not provided any credible justification for the suspension of funds. Both Shapiro and various congressional members have made efforts to regain full access to the funding, as emphasized in the lawsuit.
“Despite those efforts, and despite two temporary restraining orders compelling federal agencies to restore access to suspended funds, federal entities continue to deny Pennsylvania agencies the funding they rightfully should receive,” the lawsuit asserts.
The most prominent federal agencies identified as defendants—including the White House Office of Management and Budget, the Environmental Protection Agency, and the Departments of Interior and Transportation—did not provide immediate commentary on the lawsuit.
The Department of Interior mentioned that it generally refrains from discussing ongoing litigation, while the Department of Energy stated succinctly that it is adhering to court orders but did not disclose whether it had resumed funding associated with energy efficiency enhancements in homes, which Shapiro’s administration claims are currently on hold.
Earlier in January, the Trump administration issued a directive freezing federal grants and loans to assess whether expenditures adhered to Trump’s various executive orders, including those related to climate change, causing significant disruption.
Although the Trump administration revoked the memo within two days, funding for critical programs—including early childhood education, pollution reduction efforts, and HIV prevention research—remained inaccessible, leading nearly two dozen Democratic-led states to file a federal lawsuit.
A judge recently ordered the administration to promptly take all necessary actions to unfreeze federal grants and loans, determining that the Trump administration had not completely complied with prior directives. The administration’s swift appeal of the ruling was unsuccessful.
In Pennsylvania’s situation, Shapiro’s administration indicated that approximately $2.5 billion in grants or reimbursements designated for the state is currently either suspended or undergoing review, lacking approval from Congress or any existing funding agreements, and no justification has been provided to Shapiro’s team.
Much of the halted grant funding pertains to bills enacted by Congress through landmark laws signed by former President Joe Biden, including the transformative 2022 climate law, the Inflation Reduction Act, and the 2021 infrastructure law.
The lawsuit also points out that withheld assistance impacts programs that channel resources to seal abandoned gas wells, remediate abandoned mine sites, enhance municipal water and sewer systems, and support industries in reducing greenhouse gas emissions.
According to Shapiro’s legal team, federal authorities cannot add new stipulations to federal aid once a state has accepted it, nor can they discontinue aid unless there is a clearly defined justification in legal terms or an agreement between the state and the federal agency.
The lawsuit asserts that such actions breach the spending clause of the U.S. Constitution.
