Pennsylvania Governor Josh Shapiro announced the restoration of over $2 billion in federal aid following a lawsuit against the Trump administration. The funds, previously frozen, are now accessible to state agencies.
On February 13, Governor Shapiro filed a federal lawsuit challenging the administration’s hold on these funds, which he argued was both illegal and unconstitutional. The Trump administration had paused the disbursement, citing a need for review. However, federal courts questioned the legality of this action, leading to multiple legal challenges. In response to the lawsuit and subsequent discussions with senior officials, the administration released the withheld funds.
Shapiro commented, saying, “When I was at the White House on Friday, I again raised the issue of our frozen federal funding to President Trump’s senior team and members of his Cabinet. I urged them to follow the law and to honor their agreements with Pennsylvania. As a result of that direct engagement last week, our funding is unfrozen. They are now following the law, and we will continue to press our case.”
The U.S. attorney’s office in Philadelphia, representing the federal agencies involved, declined to comment on the matter.
The restored funds were initially allocated under significant legislation signed by former President Joe Biden, including the 2022 climate law, the Inflation Reduction Act, and the 2021 infrastructure law. These funds are designated for programs aimed at enhancing energy efficiency in homes, addressing environmental concerns like abandoned gas wells and mine lands, upgrading municipal water and sewer systems, and supporting industries in reducing greenhouse gas emissions.
The Trump administration defended the funding freeze as a necessary pause to evaluate the proper use of federal funds. They contended that the issue became moot after the Office of Management and Budget rescinded the memo that initiated the freeze in late January. Despite this, the legal challenges persisted, leading to the eventual release of the funds.
