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The Administration Froze $410 Billion in State Funding. Courts Ruled Against It More Than Half the Time.

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$410 Billion Frozen

On January 27, 2025, OMB issued a memo freezing grants, loans, and financial assistance tied to DEI and climate executive orders. The freeze affected at least $410 billion across Medicaid, Head Start, K-12 education, COPS grants, NIH research, mental health treatment, food assistance, unemployment, housing, and childcare.

$410 billion frozen. 22 states sued. Courts ruled against the freezes in the majority of 167 spending fights. K-12 schools lost $6.2 billion across five programs. The First Circuit upheld the block.

Medicaid portals went offline. K-12 schools lost $6.2 billion across five programs including Title I, IDEA, and Title III. A separate $10 billion freeze targeted childcare programs including CCDF, TANF, and the Social Services Block Grant.

Courts Pushed Back

States won more than half of 167 spending fights reviewed by Bloomberg as of January 2026. A federal court issued a temporary restraining order on January 31, 2025, blocking the freeze. The First Circuit upheld the block in March 2026. Multiple district courts ordered immediate release of funds.

The administration did not always comply. Michigan AG Dana Nessel filed enforcement motions after the administration failed to follow court orders. Vermont’s AG won a separate funding freeze case in March 2026.

The Supreme Court allowed one freeze to stand, ruling that foreign aid organizations lacked standing to challenge a $4 billion freeze. Domestic spending freezes have fared worse in court.

The Constitution Is Clear

Article I, Section 9 of the Constitution gives Congress the power of the purse. Federal funding is not a presidential discretionary tool. It is money that taxpayers already paid and that Congress appropriated for specific purposes.

Withholding appropriated funds as political leverage is impoundment, which the Impoundment Control Act of 1974 prohibits without congressional approval. That law was passed after President Nixon tried the same approach. Five states were specifically targeted for being “blue” states that challenged administration policies.

What you can do now

  1. Call your U.S. senators and tell them to enforce the Impoundment Control Act of 1974, which prohibits the president from withholding congressionally appropriated funds. The administration froze $410 billion across Medicaid, Head Start, education, housing, and childcare. Use Resist Bot to send a message.
  2. Contact your state attorney general and ask whether your state has filed or joined a lawsuit against the funding freezes. Courts have ruled against the administration in the majority of 167 spending fights. States that have not sued are leaving money on the table. Find your AG at the AG finder.
  3. Tell your U.S. representative that K-12 schools in your state lost funding from a $6.2 billion freeze across Title I, IDEA, and Title III. Ask specifically what your district lost and whether the funds have been released. Find your state page for local impacts.
  4. Ask your senators to support legislation requiring automatic release of appropriated funds when courts rule against freezes. The administration did not always comply with court orders. Michigan AG Dana Nessel had to file enforcement motions. Compliance should not depend on follow-up litigation.

Primary Sources