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CA, NY Attorneys General sue to resume federal funding of Medicaid, FEMA, PEPFAR

New OMB directive would pause funding for disaster recovery, as well as public health, education, and public safety programs SACRAMENTO — California Attorney General Rob Bonta today, along with New York Attorney General Letitia James, led a coalition of 23 attorneys general in filing a lawsuit to block implementation of a memo by the Office of Management and Budget (OMB) threatening to freeze up to $3 trillion in federal assistance funding effective at 2pm PT / 5pm ET today.

The attorneys general are seeking a temporary restraining order to block the memo from taking effect, citing immediate harms to their states, which stand to lose billions in funding essential for the administration of vital programs that support the health and safety of their residents. Many states could face immediate cash shortfalls, making it difficult to administer basic programs like funding for healthcare and food for children and to address their most pressing emergency needs. This will result in devastating consequences for California in particular, given the uncertainty around continued disbursement of FEMA funding that is essential for recovery from the Los Angeles wildfires, which have caused an estimated $150 billion in economic losses.

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