Maryland AG Joins Multistate Lawsuit Against Trump Administration Over Withheld Federal Funds

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Maryland Attorney General Joins States Suing Trump Admin Over Withheld Federal Funds Crucial for Residents.

Maryland Attorney General Anthony G. Brown, leading a coalition of state attorneys general, has initiated legal action against the Trump administration, challenging its recent attempt to withhold congressionally allocated federal funds. The lawsuit asserts that the administration’s move to impound these funds, which are vital for state services and residents, is an unlawful act that infringes upon Congress’s constitutional authority to control federal spending.

The legal challenge comes after President Trump announced on September 25, 2026, a unilateral rescission of $810 million, citing that the funds “does not benefit American citizens.” This action, occurring just days before the close of the fiscal year, has raised concerns that other congressionally appropriated funds, potentially including those for emergency services and education, may also be at risk of expiring if not obligated.

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The coalition contends that the administration’s practice of impounding funds – refusing to disburse money that Congress has legally appropriated for specific purposes – violates fundamental principles of the U.S. Constitution, including the separation of powers, the Appropriations Clause, and the Presentment Clause. Furthermore, the lawsuit argues that these actions constitute unlawful agency behavior under the Administrative Procedure Act. This latest legal maneuver by Maryland and its partner states represents a continuation of efforts to counter what they describe as a pattern by the Trump administration to obstruct or condition federal funding for state policies that diverge from the President’s preferences, even when such funding has been authorized by Congress.