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Viral Trending content > Blog > Politics > Colorado, 20 other states challenge billions of dollars in Trump administration funding cuts
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Colorado, 20 other states challenge billions of dollars in Trump administration funding cuts

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Attorneys general from Colorado, 20 other states and Washington, D.C., filed a federal lawsuit Tuesday challenging billions of dollars in funding cuts made by the Trump administration that would fund everything from crime prevention to food security to scientific research.

The lawsuit filed in Boston is asking a judge to limit the Trump administration from relying on an obscure clause in the federal regulation to cut grants that don’t align with its priorities. Since January, the lawsuit argues that the administration has used that clause to cancel entire programs and thousands of grants that had been previously awarded to states and grantees.

“The Trump administration’s decision to invoke a highly questionable regulation for terminating funds based on their changed ‘agency priorities’ is unlawful,” Colorado Attorney General Weiser said in a statement. “We are challenging this action because Colorado and other states accept hundreds of billions of dollars a year to combat violent crime, educate students, protect clean drinking water, conduct lifesaving medical and scientific research, and safeguard public health. All these priorities are at risk of funding cuts based on the misuse of this regulation.”

The lawsuit argues the Trump administration has used the clause for the basis of a “slash-and-burn campaign” to cut federal grants.

“Defendants have terminated thousands of grant awards made to Plaintiffs, pulling the rug out from under the States, and taking away critical federal funding on which States and their residents rely for essential programs,” the lawsuit added.

The White House’s Office of Management and Budget did not immediately respond to a request made Tuesday afternoon for comment.

Rhode Island Attorney General Neronha said this lawsuit was just one of several the coalition of mostly Democratic states have filed over funding cuts. For the most part, they have largely succeeded in a string of legal victories to temporarily halt cuts.

This one, though, may be the broadest challenge to those funding cuts.

“It’s no secret that this President has gone to great lengths to intercept federal funding to the states, but what may be lesser known is how the Trump Administration is attempting to justify their unlawful actions,” Neronha said in a statement. “Nearly every lawsuit this coalition of Democratic attorneys general has filed against the Administration is related to its unlawful and flagrant attempts to rob Americans of basic programs and services upon which they rely. Most often, this comes in the form of illegal federal funding cuts, which the Administration attempts to justify via a so-called ‘agency priorities clause.”

Connecticut Attorney General William Tong said the lawsuit aimed to stop funding cuts he described as indiscriminate and illegal.

“There is no ‘because I don’t like you’ or ‘because I don’t feel like it anymore’ defunding clause in federal law that allows the President to bypass Congress on a whim,” Tong said in a statement. “Since his first minutes in office, Trump has unilaterally defunded our police, our schools, our healthcare, and more. He can’t do that, and that’s why over and over again we have blocked him in court and won back our funding.”

In Massachusetts, Attorney General Andrea Campbell said the U.S. Department of Agriculture terminated a $11 million agreement with the state Department of Agricultural Resources connecting hundreds of farmers to hundreds of food distribution sites while the U.S. Environmental Protection Agency terminated a $1 million grant to the state Department of Public Health to reduce asthma triggers in low-income communities.

“We cannot stand idly by while this President continues to launch unprecedented, unlawful attacks on Massachusetts’ residents, institutions, and economy,” Campbell said in a statement.

The lawsuit argues that the OMB promulgated the use of the clause in question to justify the cuts. The clause in question, according to the lawsuit, refers to five words that say federal agents can terminate grants if the award “no longer effectuates the program goals or agency priorities.”

“The Trump Administration has claimed that five words in this Clause–’no longer effectuates . . . agency priorities’—provide federal agencies with virtually unfettered authority to withhold federal funding any time they no longer wish to support the programs for which Congress has appropriated funding,” the lawsuit said.

Stay up-to-date with Colorado Politics by signing up for our weekly newsletter, The Spot.

Originally Published: June 25, 2025 at 8:24 AM MDT

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