
By James Williams, Editor
As of February 12, 2025, Pennsylvania state agencies remain unable to access $1.2 billion in federal funds that were Congressionally appropriated for critical programs across the Commonwealth. An additional $900 million in funding is also stalled, requiring an undefined federal review before it can be drawn down. Despite multiple court rulings ordering the release of these funds and extensive engagement with Pennsylvania’s Congressional delegation, these dollars remain frozen.
Governor Josh Shapiro is now taking decisive legal action to challenge what he calls an unconstitutional funding freeze imposed by the Trump Administration. His lawsuit argues that federal agencies do not have the authority to withhold or impose new conditions on funds that have already been approved by Congress.

The frozen funds are earmarked for vital state-run programs that directly impact Pennsylvania residents, including initiatives that help thousands of households lower their utility bills, maintain public safety efforts, support infrastructure improvements, and provide health and social services to vulnerable communities. The ongoing delay is causing significant disruption, as agencies struggle to maintain services that rely on these federal dollars.
Governor Shapiro has been vocal about the consequences of this funding freeze and the federal government’s failure to comply with court orders.
“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.”
Shapiro is not alone in this fight. He has joined a coalition of 22 governors and the District of Columbia in a collective legal battle against the Trump administration’s funding freeze. These state leaders argue that the federal government’s actions not only undermine essential services but also violate constitutional principles by bypassing Congress’s authority over federal spending. The outcome of this lawsuit has the potential to impact not just Pennsylvania but other states facing similar financial roadblocks.
With legal action now underway, the Shapiro administration is pressing for a swift resolution to ensure the Commonwealth receives its rightful funding. Pennsylvania officials continue to work with federal representatives to expedite the process, but if the funding remains blocked, further legal steps may be necessary. The outcome of this case will not only determine the fate of these funds but could set a national precedent for how states can challenge federal overreach in financial matters.
The Town Crier is a Rapid Response news blog that is written by James Williams and created in collaboration with ChatGPT for research assistance and content editing.