Democratic governors Josh Shapiro of Pennsylvania and Andy Beshear of Kentucky joined the legal fight against the Trump administration on Thursday, accusing federal agencies of withholding over $1.2 billion in grants despite court orders.
Shapiro’s complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, says Pennsylvania agencies remain cut off from critical funds for infrastructure, energy assistance, and environmental programs.
“Governor Josh Shapiro and members of Pennsylvania’s agencies have been working with federal partners and legislators to try to fully restore access to these funds,” the lawsuit stated. “Despite that work, and despite two temporary restraining orders requiring federal agencies to restore access to suspended funds, federal agencies continue to deny Pennsylvania agencies funding that they are entitled to receive.”
A press release about the governor’s lawsuits alleged that an additional $900 million in grants remain flagged and require an “undefined” review, delaying projects crucial to the state’s economic and environmental goals.
“While Commonwealth agencies cannot draw from certain federal accounts, they are stuck incurring debts and obligations in federally approved projects that the Trump Administration currently is refusing to reimburse,” the press release stated.
Neither Pennsylvania nor Kentucky had previously participated in the litigation, as both states have Republican attorneys general.
Rather than filing his own suit, Beshear joined the suit brought by 22 states and the District of Columbia, and a coalition of advocacy groups.
The dispute stems from a Trump directive issued earlier this month freezing federal grants while the administration reexamines spending priorities. Opponents, including Shapiro, argue it defies Congress’s authority over federal appropriations and abrogates existing contracts between the federal government and states.
“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 – like protecting public health, cutting energy costs, providing safe, clean drinking water, and creating jobs in rural communities,” Shapiro said.
Thursday’s developments mark the first major legal bid by the two state governors since Trump took office. Both Beshear and Shapiro are considered among the Democrats who could run for president in 2028.
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The Trump administration has defended the freeze as a temporary step to reassess spending and ensure no dollars are being spent on unlawful programs, such as diversity, equity, and inclusion initiatives that Trump ordered defunded as part of his first-week agenda, among other matters.
Two federal judges have issued temporary orders blocking the policy. However, one judge who has imposed a restraining order, U.S. District Judge John McConnell, conceded that his order does not prohibit efforts to withhold tens of millions of dollars for migrant housing in New York stemming from the Federal Emergency Management Agency.
