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Michigan Attorney General Nessel promises litigation over federal funding freeze

Michigan AG Dana Nessel.JPG
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(WXYZ/SCRIPPS NEWS) — Michigan Attorney General Dana Nessel says she will be filing litigation in the wake of a freeze on federal funds to programs active in Michigan.

Nessel released the following statements Tuesday:

I am aware of the OMB memo issued last night by the White House, and my department is learning already of services impacted throughout the State, including Medicaid and Head Start. We are receiving reports of critical impacts to significant programs many millions of Michiganders rely upon daily for vital services.


“We hear and share your direct and dire concerns. My team is working at full speed today to discern what these orders mean and the extent of their immediate impacts, and request an immediate legal remedy to restore funding provided by Congress, require this administration to comply with the law, and to stop this absurd and unprecedented attack on these programs. I intend to file litigation today to protect these programs and restore these vital services.

Nessel released no other details of her actions or which programs are affected beyond the information in her statement.

The following is how Scripps News reports on the federal freeze:

The White House is taking drastic measures to control trillions of federal dollars by ordering a freeze on all federal grants and loans so President Donald Trump's administration can review government spending.

The temporary pause is slated to go into effect Tuesday at 5 p.m. ET and blocks the disbursement of nearly all federal funding. The order also directs all federal agencies to submit detailed reports on "any programs, projects or activities subject to this pause" by no later than Feb. 10, 2025.

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"The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve," Office of Management and Budget Acting Director Matthew Vaeth said in a memo. "This memorandum requires Federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements."

The order will impact a huge swath of federal funds already allocated for things like the Inflation Reduction Act and Bipartisan Infrastructure Bill projects, as well as foreign aid commitments and funding for some non-profit organizations and services.

Social Security and Medicare payments are not slated to be impacted. Funding for those initiatives will continue uninterrupted.

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Nonetheless, reaction from Democrats on Capitol Hill has been swift and angry. Senate Minority Leader Chuck Schumer said the order simply expands the "lawlessness and chaos" of the Trump administration.

"Donald Trump's Administration blatantly disobeys the law by holding up virtually all vital funds that support programs in every community across the country," Schumer said in a statement. "If this continues, the American people will pay an awful price."

"It will mean missed payrolls and rent payments and everything in between: chaos for everything from universities to non-profit charities, state disaster assistance, local law enforcement, aid to the elderly, and food for those in need," Schumer added.

Attorneys general in multiple states have said they intend to file lawsuits to block the order from going into effect.

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However, according to a senior administration official, the federal funding freeze does not apply across-the-board and will not impact individual payments or assistance.

The official also said the pause isn't permanent and is intended to give federal agencies time to ensure their grants, loans and programs comply with Trump administration policies and goals. Agencies may also reportedly seek exemptions on a case-by-case basis.