Gov. Josh Shapiro has filed a lawsuit against five federal agencies, alleging that Pennsylvania is unable to access $1.2 billion in federal grant funding appropriated by Congress and that another $900 million is being held up in an undefined review process. The lawsuit also states that billions more dollars could be affected in the coming years, and that withholding the funds is unconstitutional.
“The federal government has entered into a contract with the Commonwealth of Pennsylvania, promising to provide billions of dollars in congressionally-approved funding that we have committed to serious needs,” Shapiro said in a statement Thursday. “With this funding freeze, the Trump administration is breaking that contract – and it’s my job as governor to protect Pennsylvania’s interests.”
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Shapiro’s 38-page lawsuit says among the state programs affected by the freeze of already-appropriated funds are abandoned mine land rehabilitation and plugging abandoned oil and gas wells, which, if left undone, can have consequences for both the environment and the health and safety of nearby communities. Other programs help low-income households retrofit their homes to lower utility bills and expand the state’s clean water infrastructure.
The lawsuit alleges that the freeze could ultimately affect at least $5.5 billion of federal funding already committed to Pennsylvania in the years ahead.
On Jan. 27, the White House Office of Management and Budget ordered numerous federal agencies to freeze large amounts of already-appropriated spending following executive orders from President Donald Trump. That led to lawsuits around the country, and numerous judges ordered the federal government to resume the disbursement of congressionally-appropriated funds. A federal judge in Rhode Island has claimed that the Trump administration violated his order to unfreeze funds, and numerous Trump administration leaders have taken a hostile stance towards judges ordering that spending be resumed.
The Shapiro administration said that it has been working with Pennsylvania’s congressional delegation to resume federal funding for affected state programs, but the money remains inaccessible.
Plaintiffs in the lawsuit include the governor and the Pennsylvania Departments of Environmental Protection, Conservation and Natural Resources, Transportation, and Community and Economic Development.
Republican Attorney General Dave Sunday, who was sworn in last month, is not named as a plaintiff in the lawsuit.
Typically, the attorney general would be involved in a major suit against the federal government, however, partisan divides have seen Pennsylvania governors go their own way before.
In 2013, Democratic Attorney General Kathleen Kane refused to defend the state’s ban on gay marriage following a lawsuit filed by the American Civil Liberties Union. But Republican Governor Tom Corbett, an opponent of gay marriage, hired outside counsel to defend the law.
Attorney General David W. Sunday Jr. speaks from the podium Tuesday, Jan. 21, 2025, at The Forum Auditorium in Harrisburg, Pa., shortly after taking the oath of office. (Commonwealth Media Services)
Sunday said in a statement to the Capital-Star that Shapiro’s office reached out and made a “request for delegation,” meaning they wanted to take on the case themselves.
Sunday’s statement called the move “appropriate” given Shapiro’s office’s “familiarity and expertise regarding the disputed funding” and how it is used by state agencies.
“My office is taking a deliberate and calculated approach in response to recent federal orders and actions,” Sunday added. “I am a firm believer in the rule of law, and that these matters will be resolved by the courts and that Pennsylvania will be incorporated in those court proceedings.”
Shapiro’s office did not respond to questions about Sunday’s involvement. In his statement announcing the lawsuit, Shapiro said the Trump administration’s actions left his office with “no choice but to pursue legal action to protect the interests of the Commonwealth and its residents.”
Twenty-two Democratic state attorneys general have joined together to sue the Trump administration over the withholding of federal funds.
Already, environmental advocacy groups have praised the lawsuit.
The federal agencies named as defendants include the Departments of the Interior Energy and Transportation, the Environmental Protection Agency, and the Office of Management and Budget. Their individual secretaries, and the director of OMB, were named as well.
Molly Parzen, the executive director of Conservation Voters of Pennsylvania, said in a statement that “Shapiro is standing up for Pennsylvania families, workers, and our environment over the interests of Donald Trump’s billionaire friends in the oil and gas industry he plans to enrich with massive tax breaks.”
Clean Power PA, a coalition of nonprofits including the Conservation Voters of Pennsylvania, has also weighed in, and called on Pennsylvania’s congressional delegation to take action as well.
“Pennsylvania’s elected representatives in Congress must also join the fight by demanding that the Trump Administration not pull the plug on Pennsylvania jobs, protections for Pennsylvania workers, and energy savings for Pennsylvania families,” said Katie Blume, the coalition’s chair.
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