The lawsuit names several high-profile defendants, including U.S. Office of Management and Budget Director Russell Vought and U.S. Attorney General Pamela Bondi.

The Trump administration asserts it has the authority to cancel grants that do not align with new agency priorities established after Trump's return to office in January 2025.

Connecticut Attorney General William Tong criticized the administration's cuts as indiscriminate and illegal, asserting that there is no legal provision allowing the President to unilaterally defund federal programs.

Attorneys general from over 20 states and Washington, D.C. filed a federal lawsuit on June 24, 2025, in Boston, challenging billions of dollars in funding cuts made by the Trump administration.

The lawsuit seeks to prevent the administration from using a specific federal regulation clause to justify these funding cuts, arguing that it has been misused to terminate grants and programs that do not align with the administration's priorities.

The state attorneys general contend that the administration cannot override Congressional appropriations with the OMB regulation, emphasizing that only Congress has the power to allocate federal resources.

Massachusetts Attorney General Andrea Campbell highlighted specific instances where federal agencies terminated significant funding agreements, impacting agricultural and public health initiatives in the state.

The lawsuit highlights negative impacts on Arizona, including layoffs at the Arizona Department of Economic Security due to the loss of three U.S. Department of Labor grants.

The complaint outlines the negative consequences of these funding cuts, such as the loss of habitat restoration projects in Maine and disruption of shelter programs for migrants in Illinois.

Rhode Island Attorney General Neronha stated that this lawsuit is part of a broader coalition effort by mostly Democratic states to challenge the Trump administration's funding cuts, which have seen legal successes in the past.

White House spokesperson Harrison Fields criticized the Democrats involved in the lawsuit, suggesting they should prioritize their constituents over party agendas.

A recent ruling in Boston favored the Democratic-led states, declaring the National Institutes of Health's termination of grants linked to diversity topics as unlawful.