Pennsylvania Governor Josh Shapiro and four Pennsylvania state agencies have sued the Trump administration in order to prevent the pause of all federal grant programs as detailed in an Office of Management and Budget (OMB) memorandum issued on January 27, 2025. The memo, titled "Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs," places an indefinite pause on funding for all federally financed programs across the nation. The plaintiffs are state government agencies that rely upon federal funding that Congress has allotted them in order to carry out programs to build infrastructure, protect natural resources, and create jobs. The plaintiffs argue that the federal funding freeze violates the Administrative Procedure Act as well as the Constitutional separation of powers by withholding funds designated by Congress. The plaintiffs request that the court declare the memo unlawful and restore federal funding for Pennsylvania's state agencies.
On August 13, 2025, the plaintiffs filed a notice of voluntarily dismissal without prejudice, stating, “all funding at issue in this lawsuit has been made available to Plaintiffs once again.”
