Pennsylvania Gov. Josh Shapiro asked a judge Thursday to restart grant money flowing to his state, saying $49 billion of his annual budget — a staggering 40% of his operating expenses — comes from the federal government.
In a separate lawsuit, the state of Washington said 32% of its annual budget comes from federal largesse.
New Mexico says 89% of its state workforce assistance money comes from the federal government. Without the money, returning veterans would not have job training.
Private groups, meanwhile, say federal taxpayers’ assistance abroad is all that stands between babies being born HIV positive or mothers dying in childbirth.
As the battle over President Trump’s spending pause plays out in courts, it is becoming clear how far Uncle Sam’s financial fingers reach into American society.
Jessica Riedl, a senior fellow at the Manhattan Institute, said Washington’s money now rivals state tax bases as the source of their budget income.
“We have allowed the federal government to grow so large and so sprawling that it has essentially replaced state and local governments, that are closest to the people, in key areas such as health care, education and infrastructure,” she said.
Mr. Trump said it’s too much.
His administration ordered a spending pause and justified it by saying agencies must determine what money is being spent and whether it comports with Congress’ intent and the president’s priorities.
The pause was part of a combination of executive orders, administration memos and decisions. One of those, by the White House Office of Management and Budget, ordered a general halt in federal grant assistance.
Several federal court rulings have ordered an end to the pause, though Mr. Shapiro said $2.1 billion in grant money is still being held up.
The money is earmarked for mitigating abandoned mines, plugging old oil wells and making energy-efficiency improvements in homes owned by those with lower incomes.
“Nothing in the Constitution empowers agencies — nor the president — to arrogate to themselves the power to suspend states’ access to money that Congress appropriated or to impose new conditions on money already appropriated and obligated. In fact, the Constitution specifically requires otherwise,” Mr. Shapiro argued in the lawsuit.
Other states have chimed in with their tales of funding problems.
Maryland said it lost money for “high-quality child care and early education programs.” Rhode Island relies on federal money to help farmers research or market their “specialty crops.” Los Angeles County said it has lost access to HIV program money.
Trump officials are battling the lawsuits.
They have told judges it’s often impossible to separate the money paused and restarted from the OMB memo from what was halted under Mr. Trump’s inherent executive powers or agencies’ independent duties to ensure money is carefully spent.
So far, courts have not been persuaded on that point.
Conservatives have long argued for paring down federal responsibilities, though they have been less successful at achieving those goals. The budget for the Education Department, long a target of conservatives, grew 23% over the four years of the first Trump administration.
About a quarter of the Education Department’s money is transferred directly to the states.
According to USAFacts.org, more than 40% of the Health and Human Services Department budget and 80% of the Transportation Department budget is transferred to the states.
Mr. Trump has indicated he wants that to change in his second term.
He has floated an elimination of the Federal Emergency Management Agency. The Homeland Security Department agency is responsible for delivering immediate services and helping recover and rebuild after disasters.
When a federal disaster is declared, FEMA usually pays 75% of the recovery costs, though that can go higher. President Biden committed the federal government to cover 100% of recovery costs from California’s recent wildfires.
Mr. Trump says states can take over emergency assistance.
“FEMA is getting in the way of everything,” Mr. Trump said upon taking office.
Ms. Riedl said an argument can be made for states to do more, particularly in lower-level disaster situations, but she pointed out that disasters can easily swamp states’ abilities.
Hurricane Helene cut a $60 billion swath of destruction through North Carolina, roughly the size of the state government’s annual budget last year.
• Stephen Dinan can be reached at sdinan@washingtontimes.com.
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