


Pennsylvania Gov. Josh Shapiro, in a new lawsuit Thursday asking a judge to restart grant money flowing to his state, said $49 billion of his annual budget — a staggering 40% of his operating expenses — comes from the feds.
The state of Washington, in a separate lawsuit, said 32% of its annual budget is paid for by the federal largesse.
And New Mexico says 89% of its state workforce-assistance money is courtesy of the feds. No money means no job training for returning veterans.
Private groups, meanwhile, say that federal taxpayers’ assistance sent abroad is all that stands between babies being born HIV positive, or mothers dying in childbirth.
As the battle over President Trump’s spending pause plays out in the courts, it’s becoming clear just how far Uncle Sam’s financial fingers reach in American society.
Jessica Riedl, a senior fellow at the Manhattan Institute, said Washington’s money now rivals the states’ own tax bases as the source of their budget income.
“We have allowed the federal government to grow so large and so sprawling that it has essentially replaced state and local governments, that are closest to the people, in key areas such as health care, education and infrastructure,” she said.
Mr. Trump says it’s all too much.
His administration ordered a spending pause, justifying it by saying agencies need to get a handle on what money is going out the door and whether it actually comports with Congress’ intent and the president’s own priorities.
The pause came in a combination of executive orders and administration memos and decisions. One of those, by the White House Office of Management and Budget, ordered a general halt in federal grant assistance.
Several federal court rulings have put a pause on the pause, though Mr. Shapiro, in his new lawsuit Thursday, said some of the money still isn’t flowing.
He identified $2.1 billion in grant money that he said is still held up.
That is supposed to be paying for everything from mitigating abandoned mines and plugging old oil wells to making energy-efficiency improvements in homes owned by those with lower incomes.
“Nothing in the Constitution empowers agencies — nor the president — to arrogate to themselves the power to suspend states’ access to money that Congress appropriated or to impose new conditions on money already appropriated and obligated. In fact, the Constitution specifically requires otherwise,” Mr. Shapiro argued in the lawsuit.
Other states have chimed in with their own tales of funding woes at Mr. Trump’s hands.
Maryland says it has lost money that paid for “high-quality child care and early education programs.” Rhode Island relies on federal money to help farmers research or market their “specialty crops.” Los Angeles County said it’s lost access to HIV program money.
Trump officials are battling the lawsuits.
They have told judges it’s often impossible to separate out the money that was paused — and then restarted — from the OMB memo, compared to what was halted under Mr. Trump’s inherent executive powers or agencies’ own independent duties to ensure money is carefully spent.
So far, courts have not been persuaded on that point.
Conservatives have long argued for a paring down of federal responsibilities, though they have been less successful at achieving those goals. The Education Department, long a target of conservative ire, saw its budget grow 23% over the four years of the first Trump administration.
About a quarter of the Education Department’s money is transferred directly to the states, and the department is not alone in that regard.
More than 40% of Health and Human Services’ budget is a transfer to the states, while at the Transportation Department, that figure tops 80%, according to USAFacts.org.
Mr. Trump has indicated he wants all that to change in his second term.
One proposal he’s floated several times already is to nix the Federal Emergency Management Agency, which is part of Homeland Security and has the job of swooping in to deliver immediate services and then help with recovery and rebuilding after disasters.
When a federal disaster is declared, FEMA usually pays 75% of the recovery costs, though that can go higher. President Biden committed the feds to cover 100% of recovery costs from California’s recent wildfires.
But Mr. Trump says states can take over emergency assistance.
“FEMA is getting in the way of everything,” Mr. Trump said upon taking office.
Ms. Riedl said there’s an argument to be made for states doing more, particularly in lower-level disaster situations. But she pointed out that disasters can easily swamp states’ abilities.
For example, Hurricane Helene cut a $60 billion swath of destruction through North Carolina last year, an amount roughly the size of the state government’s total annual budget.
• Stephen Dinan can be reached at sdinan@washingtontimes.com.