California and six states sue Trump administration over $810 million funding rescission

California and six other states—Maine, Maryland, Michigan, Nevada, New Mexico, and Oregon—have filed a lawsuit against the Trump administration over the unilateral cancellation of $810 million in congressionally approved federal funding.

The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that the administration’s use of a “pocket rescission” violates the Impoundment Control Act and constitutional separation-of-powers protections. The states argue that by announcing the rescissions just five days before the end of the fiscal year, the administration prevented Congress from meaningfully reviewing the cancellations before the funds expired.

The targeted funds include $567 million in Department of Health and Human Services grants for refugee and asylum services, as well as funding for race-based programs and gender-related research. The White House defended the move, stating the president is committed to cutting “wasteful and harmful government spending that does not benefit American citizens.” California Attorney General Rob Bonta characterized the move as an unconstitutional attempt to make funds permanently unavailable to their intended recipients.