Seven US states sue Trump administration over $810 million in delayed funds

October 1, 2026 at 05:28 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

California and six other US states sued the Trump administration on Wednesday, accusing it of illegally delaying $810 million in congressionally approved funds. The lawsuit, filed in the Northern District of California, challenges the administration's use of a 'pocket rescission' to let the funds expire before the end of the fiscal year. The states argue the move violates the separation of powers and Congress's exclusive authority over federal spending.

Key Facts

The lawsuit was filed in the US District Court for the Northern District of California and led by California Attorney General Rob Bonta.
The $810 million in disputed funds includes about $567 million for refugee support from the Department of Health and Human Services and nearly $70 million for foreign language instruction from the Department of Education.
The National Hep-Camp Association filed a separate lawsuit in the District of Columbia over nearly $25 million in funds for education of students from migrant and seasonal farmworker families.
President Trump announced the rescission on September 25, saying the funds wouldn't benefit American citizens.

The Lawsuit

California, Maine, and several other states filed the complaint on Wednesday in the US District Court for the Northern District of California. The states argue the administration's refusal to spend funds appropriated by Congress violates the constitutional principle of separation of powers, as well as the Appropriations and Presentment Clauses. The lawsuit asks the court to declare pocket rescissions unlawful and bar federal officials from disrupting the required obligation of the funds. California Attorney General Rob Bonta said, 'Just because the president doesn't like a particular program doesn't mean he can strip it of its funding.'

The Pocket Rescission

The administration used a mechanism known as a 'pocket rescission,' submitting a request to cancel funding so close to the end of the fiscal year that the funds expire before lawmakers can consider it. Trump announced on September 25 that he was rescinding $810 million in funds the administration believed wouldn't benefit American citizens. The funds were earmarked for programs related to immigration, race, and education, including about $567 million for refugee support and nearly $70 million for foreign language instruction. The states told the court that the administration's attempt to force the funds to expire before the states can get them is 'tantamount to theft.'

White House Response

Last week, the White House said the programs receiving the funds encouraged illegal immigration, heightened racial tensions, and promoted an excessively alarmist approach to environmental issues. The White House could not be reached for comment on the lawsuit outside regular business hours.