EYE-ON-USA: New York AG Letitia James Launch Legal Battle Against Trump’s Federal Funding Freeze

By Ed Malik, A | ed@ddnewsonline.com | posted January 30th, 2025

Another round of traditional anti-Trump circus is about to roll, as New York Attorney General Letitia James has initiated legal action against the Trump administration’s recent decision to temporarily halt federal grants and loans. This pause, intended to review the alignment of funding with President Trump’s executive orders—such as eliminating Diversity, Equity, and Inclusion (DEI) initiatives, reducing green energy spending, and decreasing foreign aid—has been met with significant opposition.
Given James’ track record, no one should be surprised. At this point, her obsession with Trump isn’t just predictable—it’s comedic, in a way.

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The Trump administration recently halted certain financial assistance programs to review compliance with the president’s executive orders, which include directives to eliminate DEI initiatives, cut green energy spending, and reduce foreign aid. According to an internal memo from the Office of Management and Budget (OMB), led by Acting Director Matthew Vaeth, the temporary freeze affects over $3 trillion of the federal government’s $10 trillion Fiscal Year 2024 budget.
In response, Attorney General James, leading a coalition of 22 other attorneys general, filed a lawsuit to prevent the implementation of this funding freeze. The coalition argues that the administration’s action is an unconstitutional overreach of executive authority, infringing upon Congress’s power of the purse. They contend that the freeze could disrupt essential services and programs, including education, healthcare, and disaster relief, which rely heavily on federal funding.
A federal judge, Loren AliKhan, has temporarily blocked the administration’s pause on federal grants and loans, citing concerns over potential widespread disruptions. The judge’s order mandates the continuation of federal assistance distribution until a more comprehensive legal review can be conducted.

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This legal challenge underscores the ongoing tension between the Trump administration and various state officials regarding federal funding priorities and the scope of executive power.

The pause, effective January 28, 2025, directs federal agencies to identify programs that contradict Trump’s America First policies—such as his executive orders “Protecting the American People Against Invasion” and “Ending Radical and Wasteful Government DEI Programs.” Agencies have until February 10, 2025, to submit reports to the OMB outlining programs that could be cut or redirected to better serve American taxpayers.

Unsurprisingly, Letitia James wasted no time attacking Trump’s move, calling it “reckless and dangerous.” On X, she declared, “Programs in communities across the entire nation depend on this funding to support our families, and this action is only going to hurt them.”

She followed up on Tuesday with an announcement that she would take “imminent legal action” against the administration, claiming the funding pause is unconstitutional and “harms our families.” Because, apparently, reviewing whether billions of dollars are being funneled into radical leftist projects is a bigger legal emergency than, say, violent crime in New York.

This is just the latest chapter in James’ personal vendetta against Trump. Over the past few years, she has turned the New York Attorney General’s office into a weapon against Trump’s business empire, filing multiple lawsuits in an attempt to financially cripple him.

Her 2022 lawsuit against Trump and his family accused them of inflating asset values to secure better loan terms. In February 2024, a politically motivated judge ruled against Trump, slapping him with a $354.8 million penalty and banning him from serving as an executive in New York corporations for three years.

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James’ legal crusade has never been about justice—it’s about waging lawfare against a political opponent. Now, as Trump reasserts control over the federal budget, she’s once again stepping in to obstruct his America First policies.

Trump’s federal funding review is a common-sense move to ensure American tax dollars aren’t being wasted on radical leftist programs. But for Letitia James, any Trump action—no matter how lawful or necessary—is an excuse for another headline-grabbing lawsuit.