Arizona sues Trump administration over move to pause federal grants and loans
Jan 28, 2025, 3:20 PM | Updated: 6:01 pm
PHOENIX — A federal judge has temporarily blocked the Trump administration’s decision to pause federal grants and loans, but Arizona joined a lawsuit Tuesday aimed at making sure the plan never comes to light.
The temporary block, which will last until Monday, happened right before the decision was set to go in effect at 3 p.m. Arizona time. Arizona Attorney General Kris Mayes, minutes before the decision was announced, said a freeze “will immediately result in devastating harm for American citizens and Arizonans.”
She mentioned health systems, infrastructure, law enforcement and education as sectors that would immediately suffer from the decision.
“This lawless and chaotic order attempts to steal allocated dollars that had been included in state budgets,” Mayes said in a press conference. “These funds ensure that the residents of Arizona and all other states have access to quality health care, law enforcement protection, safe roads and assistance of aftermath of natural disasters.”
Arizona is among 23 states that joined the lawsuit filed in Rhode Island.
Why did Trump administration decide to pause federal grants and loans?
Administration officials said the decision to halt loans and grants — a financial lifeline for local governments, schools and nonprofit organizations around the country — was necessary to ensure that spending complies with Trump’s recent blitz of executive orders. The Republican president wants to increase fossil fuel production, remove protections for transgender people and end diversity, equity and inclusion efforts.
But a vaguely worded memo issued by the Office of Management and Budget, combined with incomplete answers from the White House throughout the day, left lawmakers, public officials and average Americans struggling to figure out what programs would be affected by the pause. Even temporary interruptions in funding could cause layoffs or delays in public services.
Trump administration officials said programs that provide direct assistance to Americans would not be affected, such as Medicare, Medicaid, Social Security, student loans and food stamps. They also defended the funding pause, saying Trump was following through on his promise to turn Washington upside down if elected to a second term.
Agencies were informed of the decision just a day before it was set to go into effect.
Arizona Democrats frustrated with Trump administration decision
Mayes wasn’t the only Democratic elected official to denounce the move that they say is capricious and illegal because Congress had already authorized the money.
In Arizona, Gov. Katie Hobbs urged the state’s congressional delegation to seek clarity from the Trump administration and protect its authority.
“Arizona cannot and will not stand by while these reckless actions harm our residents,” Hobbs said in a letter.
U.S. Sen. Ruben Gallego agreed, telling KTAR News 92.3 FM’s Outspoken with Bruce and Gaydos on Tuesday that the pause would cause problems.
“This is the kind of thing that happens when you’re just trying to be tough,” Gallego said. “This caused chaos. There was no warning ahead of time, there was no working with Congress.”
Fellow U.S. Sen. Mark Kelly told KTAR News 92.3 FM on Tuesday that the plan was a shock to him.
“It’s hard to believe that any president would do something that’s so reckless,” Kelly said.
KTAR News 92.3 FM’s Heidi Hommel and The Associated Press contributed to this report.