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Gov. Shapiro Files Lawsuit Challenging President's Unconstitutional Federal Funding Freeze In Order to Protect PA Interests; Mine Reclamation, Conventional Well Plugging, Many Other Funds At Risk

On February 13, Gov. Josh Shapiro filed a lawsuit challenging the Trump Administration’s unconstitutional freeze of federal funding.

Federal funding is in jeopardy for critical Pennsylvania-based initiatives including reclaiming abandoned mine land, capping and plugging orphan wells, and lowering consumer costs.

For example, abandoned mine land dollars that are currently frozen will allow the Commonwealth to reclaim 24,000 acres of abandoned mine land across Pennsylvania, construct or maintain 16 water treatment systems that deal with toxic runoff from abandoned mines, and respond to about 60 emergency events per year.

Left unaddressed, abandoned mines can cave in and form sinkholes, causing significant property damage and even death – as happened in Westmoreland County in December 2024.

Additionally, the federal funding freeze has restricted access to funding that would help plug more than 500 orphaned and abandoned wells that are releasing toxic chemicals in Pennsylvania communities, as well as funding that would help up to 28,000 Pennsylvania households lower their utility bills.

To ensure the interests of our Commonwealth and its residents are protected, Governor Shapiro is taking legal action to restore access to this funding.

“The federal government has entered into a contract with the Commonwealth of Pennsylvania, promising to provide billions of dollars in Congressionally-approved funding that we have committed to serious needs – like protecting public health, cutting energy costs, providing safe, clean drinking water, and creating jobs in rural communities,” said Governor Shapiro. “With this funding freeze, the Trump Administration is breaking that contract – and it’s my job as Governor to protect Pennsylvania’s interests. Over the past two weeks, my team and I have engaged with our Congressional delegation to try to restore access to all the federal funding Pennsylvania has been promised under law – but despite those efforts, state agencies remain unable to draw down these critical dollars. While multiple federal judges have ordered the Trump Administration to unfreeze this funding, access has not been restored, leaving my Administration with no choice but to pursue legal action to protect the interests of the Commonwealth and its residents.”

Almost immediately after the White House Office of Management and Budget (OMB) issued a directive on January 27, 2025, Commonwealth agencies realized that billions in federal funding appropriated by Congress to Pennsylvania were no longer accessible.

Federal agencies suspended access to billions of dollars in funding without supplying a plausible explanation as to why certain funds are being suspended, giving any consideration to the harm their action would cause, or considering how Commonwealth agencies have relied on receiving that committed funding.

Since then, the Shapiro Administration has worked with its federal partners and Pennsylvania’s Congressional delegation in an attempt to fully restore access to these funds. Simultaneously, multiple federal judges have ordered the Trump Administration to unfreeze this funding – however, because Pennsylvania was not involved in previous litigation, it is not guaranteed that future litigation in those cases will protect Pennsylvania's interests and funding.

As of February 12, 2025, despite those multiple court orders, over $1.2 billion in federal funding owed to Pennsylvania agencies remains suspended – and more than $900 million in funding is now marked as requiring further (but unarticulated) federal agency review before reimbursement requests can be approved.

While Commonwealth agencies cannot draw from certain federal accounts, they are stuck incurring debts and obligations in federally approved projects that the Trump Administration currently is refusing to reimburse.

While agencies have some reserves and discretionary dollars to cover small, unexpected debts, the scope of the federal freeze will far exceed those reserves.

The U.S. Constitution clearly states that federal agencies do not have the power to suspend states’ access to money that Congress appropriated or to impose new conditions on money already appropriated and obligated. Governor Shapiro is taking action to unfreeze these funds and ensure Pennsylvania is legally protected so that Commonwealth agencies can continue their work to improve Pennsylvanians’ lives.

Click Here for a copy of the full complaint.

Click Here for Gov. Shapiro's announcement.

Reactions

The Clean Air Council’s Executive Director Alex Bomstein issued the following statement on the lawsuit-- “The Trump administration has been committing theft at a grand scale, no different than if Washington told your bank to freeze you out of your checking account. Pennsylvanians pay taxes to the federal government and expect services in return.

“Blocking critical programs such as ones that ensure safe drinking water for Pennsylvania residents is appalling and unconstitutional. We applaud the governor for taking action to protect Pennsylvanians and the programs they rely on daily.”

The PA Environmental Council issued this statement from John Walliser, Senior VP, Legal & Government Affairs, on the Governor's action-- "The Pennsylvania Environmental Council (PEC) applauds Governor Shapiro’s action today to secure federal funding that was enacted in law with bipartisan support and committed to Pennsylvania.

"This funding is essential to every corner of our state – remediating abandoned mine lands and plugging orphaned wells, investing in new clean energy technologies to make businesses and industry more competitive, and helping everyday citizens save money on home improvement and energy costs.

"From engineers to skilled workers to equipment operators to manufacturers, these programs put Pennsylvanians to work and improve our economy and communities.

"Now is not the time to shrink from the challenges we face. The federal government must honor its commitments and advance solutions that benefit all citizens of our Commonwealth."

The York County-based, national Evangelical Environmental Network released this statement on the Governor's lawsuit--

Gov. Shapiro announced that his administration filed a lawsuit to unlock $1.2 billion in suspended federal funding owed to Pennsylvania agencies, arguing the Trump Administration has failed to comply with multiple court orders.

These frozen funds for Pennsylvania include critical environmental and health initiatives, including:

-- Funds that will allow the commonwealth to reclaim and restore 24,000 acres of abandoned mine land across Pennsylvania,

-- Funding to clean up toxic runoff from abandoned mines by constructing or maintaining 16 water treatment systems,

-- Funding to plug numerous abandoned and orphaned wells, which would support clean air and pure water in Pennsylvania while creating jobs,

-- Funds to help plug more than 500 orphaned and abandoned wells that are releasing toxic chemicals into Pennsylvania communities, and lastly,

-- Funding that would help up to 28,000 Pennsylvania households lower their utility bills.

"These projects are vital to restoring God’s creation and defending the life of all God’s children from harmful pollution.

"The withholding of funds has created community uncertainty, with the risk of layoffs and project cancellations.

"The Evangelical Environmental Network (EEN) urges that these programs, and others that support the health and economic wellbeing of Pennsylvania, receive immediate exemptions from the federal funding freeze."

Adam Peltz, Director and Senior Attorney, Energy Transition at Environmental Defense Fund emphasized the critical role of federal funds in plugging orphaned and abandoned wells across the Commonwealth--

"The work Pennsylvania is doing to plug orphaned and abandoned wells across the Commonwealth using Congressionally authorized funds is critical for public health and safety, protecting clean air and clean water, raising property values and creating jobs in the oilfield services industry.

"Kudos to Gov. Shapiro for his action to support Pennsylvania jobs and to allow this and other federally funded time-sensitive work to continue."

Related NewsClip:

-- PennLive: Republican Attorney General Dave Sunday OKs Shapiro Lawsuit On Federal Funding Freeze

NewsClips - Freeze:

-- AP: Federal Appeals Court Won’t Halt Judge’s Order Requiring President To Unfreeze All Federal Cash

-- AP: White House Says Federal Judges Going Against President’s Actions Are Provoking A ‘Constitutional Crisis’

-- CNN: Billions In Federal Funding Remain Frozen Despite Federal Court Orders To Keep The Taps Open

-- NYT: EPA Still Has Grants Frozen Despite 2 Federal Court Orders To End The Freeze

-- Grist: President’s Push For ‘Efficiency’ May Destroy The EPA; What Does That Mean For You?

-- Bloomberg: EPA Seeking To Claw Back $20 Billion In Awards From Federal Climate Law

-- The Hill: EPA Fires 388 Probationary Employees

-- EPA Places 171 DEIA And Environmental Justice Employees On Administrative Leave