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California and six states sue Trump administration over $810M in withheld federal funds
Led by California AG Rob Bonta, seven states filed suit September 30 in the Northern District of California, challenging the White House's "pocket rescission" of $810 million Congress had approved.
Why it matters
This is another major legal clash over the limits of presidential spending power. Seven states accuse the Trump administration of bypassing Congress's power of the purse by using a "pocket rescission" to let already-appropriated funds expire before the fiscal year ended.
What happened
The lawsuit was filed Wednesday, September 30, in the U.S. District Court for the Northern District of California. It is led by California Attorney General Rob Bonta and joined by the attorneys general of Maine, Maryland, Michigan, Nevada, New Mexico and Oregon. The disputed sum is about $810 million across 11 funding accounts; the largest piece, about $567.4 million, comes from the Department of Health and Human Services' Refugee and Entrant Assistance account. The White House submitted its rescission package to Congress on September 25; the federal fiscal year ended September 30.
Both sides
Bonta said he was "appalled by President Trump's blatant disregard for the basic Constitutional framework of our government," arguing the administration violated the separation of powers, appropriations and presentment clauses. The White House said last week the targeted programs supported illegal immigration, stoked racial tensions and promoted alarmist approaches to the environment. The White House could not immediately be reached for comment.
Background
A "pocket rescission" sends Congress a request to cancel funds so close to the end of a fiscal year that they expire before lawmakers can act. The Government Accountability Office has previously concluded the law does not permit this. Under the Impoundment Control Act of 1974, Congress has 45 days of continuous session to consider a rescission, and funds must be released if it does not approve.
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