Great Lakes Wire

Michigan Attorney General Dana Nessel has joined a coalition of 22 attorneys general in a lawsuit aimed at stopping the implementation of a new policy from the Trump administration. The policy, issued by the President’s Office of Management and Budget (OMB), calls for an indefinite pause on federal assistance to states, potentially affecting trillions of dollars in funding crucial for various state programs.

Nessel and her colleagues are seeking a court order to halt the enforcement of this OMB directive. According to Nessel, "Freezing these critical federal funds will harm millions of Michigan residents who rely on these essential, congressionally funded programs." She emphasized that if the freeze is implemented fully, it would have dire consequences for Michigan families and communities.

The OMB's policy was announced late on January 27, 2025, with instructions for all federal agencies to begin pausing significant amounts of funding starting at 5:00 pm on January 28. This decision has already caused chaos and uncertainty across the country as many Americans depend on state programs funded by these federal resources.

Nessel further stated that "This freeze not only jeopardizes the well-being of Michiganders but it is a clear violation of the Constitution and the laws that govern our country." She pledged to fight against what she described as an unprecedented attack on citizens' rights.

The lawsuit highlights several potential impacts on Michigan if the freeze proceeds. Programs such as Medicaid, SNAP, TANF, CHIP administered by Michigan's Department of Health and Human Services could face severe budget cuts. Additionally, funding for Child Development and Care might be halted immediately affecting about 42,000 children in Michigan.

Furthermore, Attorney General Nessel warned that essential services provided by law enforcement could suffer due to paused support from initiatives like those combatting hate crimes or aiding victims through community policing efforts. Disaster relief funds vital for states recovering from natural disasters are also at risk under this policy.

In their legal challenge, Nessel and other attorneys general argue that OMB’s action violates both constitutional provisions and specific laws governing federal spending. They contend that only Congress holds authority over how such funds should be allocated or withheld.

The coalition behind this lawsuit includes leading figures from New York, California among others along with representatives from Arizona through Wisconsin including Washington D.C., collectively challenging what they see as an unconstitutional overreach by executive power without legislative consent or oversight regarding public expenditure management nationwide.