On January 30, 2025 — just three days after the OMB funding freeze memo — New York Attorney General Letitia James led a coalition of 22 state attorneys general and the District of Columbia in securing a temporary restraining order from Judge John McConnell blocking the Trump administration's attempt to freeze trillions in congressionally appropriated federal funds.
This was the first major multistate legal victory against the Trump second term, and it established the template for state-level resistance that would scale to 71 lawsuits within one year. The coalition argued successfully that the executive branch cannot unilaterally withhold funds that Congress has appropriated, invoking the Impoundment Control Act and separation of powers principles.
Speed and Coordination
The three-day turnaround from OMB memo to court order demonstrated the infrastructure that Democratic state AGs had built since Trump's first term. The coalition mobilized rapidly using pre-established coordination networks, filed in a favorable jurisdiction, and obtained emergency relief before the funding disruptions could cascade into lasting harm to state programs.
Broader Pattern
This initial victory was followed by additional state AG wins blocking wind energy permitting freezes (18-state coalition), disaster preparedness funding cuts (20-state coalition), and social services gutting (21-state coalition). By March 2026, the pace of state litigation reached 71 suits — historically unprecedented and reflecting both the breadth of federal overreach and the organized nature of state resistance.
Capture Significance
The funding freeze litigation established that state attorneys general would serve as the primary institutional check on executive overreach during the Trump second term. With Congress controlled by the president's party and the Supreme Court ideologically sympathetic, state-level legal resistance became the most effective remaining mechanism for enforcing constitutional limits on executive power.