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Seven states sue Trump administration for unlawfully withholding federal funds

California and six other states sued the Trump administration on Wednesday, accusing it of unlawfully withholding federal funds approved by Congress, including about $810 million that the White House sought to cancel before the end of the fiscal year.

The lawsuit challenges the administration’s use of a technique known as a “pocket rescission”, under which a president asks Congress to cancel funds so close to the end of the fiscal year that lawmakers have little or no time to act before the money expires.

The $810 million in funds targeted by the administration was approved by Congress for programs involving immigration, race and education, according to the lawsuit and government documents.

The case was filed in the US District Court for the Northern District of California and is led by California Attorney General Rob Bonta, who is joined by attorneys general from six other states.

The states argue that the administration’s decision to withhold the funds violates the Constitution’s separation-of-powers, appropriations and presentment clauses. They also argue that the administration’s action violates the Administrative Procedure Act.

“I continue to be appalled by President Trump’s blatant disregard for the basic Constitutional framework of our government. Just because the President doesn’t like a program doesn’t mean he can defund it,” Bonta said in a statement.

The lawsuit sets up a new legal dispute over the limits of presidential spending power and Congress’s constitutional authority over federal appropriations.

The White House has said the targeted programs supported what it described as illegal immigration, stoked racial tensions and promoted “alarmist” approaches to the environment.

The administration announced the $810 million rescission request on Sept. 25, five days before the Sept. 30 end of the fiscal year. The states argue that the timing effectively prevented Congress from acting on the request before the funds expired.

The Government Accountability Office has separately said the administration’s use of a pocket rescission to cancel the funding violates federal budget law.

The White House did not immediately respond to a request for comment on the lawsuit, according to Reuters.

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