Attorney General Brown Challenges Trump Administration’s Attempt to Impound Federal Funding

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Lawsuit Seeks States’ Ability to Recover Congressionally Appropriated Federal Funding Impounded by the Trump Administration  

BALTIMORE, MD – Attorney General Anthony G. Brown, as part of a multistate coalition, filed a lawsuit challenging the Trump administration’s unlawful attempt to impound congressionally appropriated federal funding that is crucial for states and their residents. 

On September 25, 2026, five days before the end of the fiscal year, President Trump announced that his administration would unilaterally rescind $810 million that it determined “does not benefit American citizens.” Additionally, as of September 30, 2026, other congressionally appropriated funding appears to remain unobligated and is therefore at risk of expiring, including funding for emergency services and education.

“For nearly two years, the Trump Administration has unlawfully threatened to withhold money that Congress put in the federal budget. Now, in the final days of the fiscal year, the Administration has again used unlawful gimmicks to threaten resources Marylanders depend on,” said Attorney General Brown. “We will not allow this Administration to harm Maryland communities by undermining Congress’s power of the purse.” 

This is the latest front in a multi-year campaign of attempts by the Trump administration to stop, terminate, withdraw, and condition funding to states supporting policies with which the President disagrees but which Congress has chosen to fund. In fact, several lawsuits Attorney General Brown has filed against the current administration have involved attempts to restrict, rescind, or unlawfully condition federal funding to Maryland. But it is Congress, not the President, that wields the power of the purse. 

In the lawsuit, filed in the U.S. District Court for the Northern District of California, Attorney General Brown and the coalition argue that the impoundment of federal funding, including the President’s “pocket rescission” announced on September 25, violates the U.S. Constitution and is an unlawful agency action in violation of the Administrative Procedure Act.  

The coalition also argues that impoundment – the administration’s refusal to spend funds Congress has lawfully appropriated for particular purposes – violates the separation of powers, the Appropriations Clause, and the Presentment Clause of the U.S. Constitution. 

Joining Attorney General Brown in filing the lawsuit are the attorneys general of California, Maine, Michigan, Nevada, New Mexico, and Oregon.  

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