Michigan Attorney General Dana Nessel joined 22 other states Tuesday in a federal lawsuit seeking to permanently halt a freeze on disbursing some federal funds to states while the Trump administration decides whether the spending matches its priorities.
A judge quickly put a hold on the freeze pending a review, but the administration’s actions aimed at rolling back existing diversity, environmental and energy policies left groups rushing to interpret the potential impacts.
“This freeze is affecting programs that millions of Michiganders depend on for their daily survival,” Nessel said in a video released by her office.
Local governments, schools, colleges, universities and not-for-profit organizations in Michigan are also looking at what a freeze might mean.
“We’re very happy with the reprieve for the time being. But it is just that – it’s the time being,” said Portia Roberson, CEO of the Detroit not-for-profit organization Focus: Hope. “So, there is the inability to sort of prepare for the future.”
That same uncertainty will play a part in the state’s plans as Governor Gretchen Whitmer prepares to roll out her new budget proposal and deliver her State of the State address next month.
The State Budget Office said 42% of the current state budget is built on $34 billion from the federal government.
“Federal funding is critical to protecting the health and safety of all Michiganders—ensuring drinking water is clean and food is safe, keeping people in their homes and the power on, and funding homeland security and emergency management,” said State Budget Director Jen Flood. “We are currently working across state government to examine how recent federal action to withhold funds appropriated by Congress will impact vital programs like food assistance, Medicaid and Head Start.”
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