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The lawsuit, filed in the U.S. District Court for the Eastern District of Pennsylvania, seeks to overturn what Shapiro calls an “unconstitutional” freeze of $1.2 billion in federal funds and an additional $900 million placed under indefinite federal review.
“Despite multiple court orders and efforts with Pennsylvania’s Congressional delegation, the Trump Administration continues to unlawfully withhold billions in funding critical to public health, clean water, and job creation,” Shapiro said in a statement.
The funding freeze began on Jan. 27, 2025, following an order from the White House Office of Management and Budget (OMB) halting disbursement of funds tied to the Inflation Reduction Act and Infrastructure Investment and Jobs Act.
According to the lawsuit, the suspension jeopardizes programs including:
- $3 billion for abandoned mine land reclamation, affecting 24,000 acres and 16 water treatment systems statewide.
- $76 million for plugging 500 orphaned gas wells leaking toxic chemicals.
- $252 million for low-income energy efficiency programs, helping 28,000 families reduce utility bills.
Shapiro’s lawsuit names multiple federal agencies, including the U.S. Departments of the Interior, Energy, and Transportation, and alleges the freeze violates both the U.S. Constitution and federal statutes mandating the release of congressionally appropriated funds.
Pennsylvania joins a broader legal battle against the federal freeze, with two previous court rulings ordering the Trump Administration to unfreeze funding. However, Shapiro says those rulings do not specifically protect Pennsylvania’s interests, prompting the state to file its own lawsuit.
“This unlawful freeze has forced state agencies into debt, jeopardized public safety projects, and risks costing Pennsylvania families millions in savings,” Shapiro said.
The Shapiro Administration is seeking an injunction to compel federal agencies to restore access to the funds immediately.
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