A directive from President Donald Trump’s budget office to halt federal grant funding for states has sparked confusion and pushback in New York. State attorneys general, including New York’s Letitia James, have announced plans to sue the administration over the move, which came into effect Monday evening. James emphasized that this policy is reckless, affecting millions of Americans relying on programs like Head Start, SNAP, and Medicaid.
The White House directive would halt funding for federal programs tied to Trump’s agenda, including initiatives aimed at reducing diversity, equity, and inclusion (DEI), as well as support for the green new deal and organizations that undermine national interests. Key affected programs include those providing healthcare, disaster relief, and infrastructure funding, such as SNAP, Medicaid, and Medicare.
New York alone receives billions in federal aid, with Medicaid accounting for about $93 billion to cover seven million residents. The pause could also disrupt other critical agencies like the MTA and public universities, while federal infrastructure projects, including the Gateway Tunnel ($12 billion), MTA ($4.5 billion), and city initiatives ($2.3 billion), may be impacted.
State leaders, including New York’s Governor Kathy Hochul and Mayor Eric Adams, have expressed uncertainty about the directive’s effects on their communities and are assessing its impact. Both have announced plans to appeal the pause order and advocate for federal programs affected by the freeze.
The legal battle has already delayed the implementation of the directive until a court hearing on Monday, with some states still locked out of Medicaid reimbursement systems. New York City relies heavily on federal funding, including $10 billion in aid from the Biden administration’s infrastructure plan.
The pause could disrupt the state budget process, which requires adopting the next fiscal year’s budget by March 30, while cities like New York have until June to align budgets with federal funds. The administration’s authority to halt federal grants has drawn criticism, with attorneys general arguing it exceeds Congress’s purview under the U.S. Constitution.
This directive highlights growing tensions between federal and state governments over funding control, raising questions about the balance of power in American politics.
Source: https://www.thecity.nyc/2025/01/28/trump-letitia-james-medicaid-budget