Pennsylvania Governor Josh Shapiro announced Monday that the Trump administration has unlocked over $2 billion in federal aid previously stalled, a move he had challenged as illegal in a lawsuit filed earlier this month. The Democrat hailed the release as a win for the state, ensuring funds flow to critical programs after weeks of contention with federal agencies under President Donald Trump.
At a glance:
- Shapiro says Trump’s administration freed up over $2 billion in federal grants and loans.
- The funds were frozen, prompting Shapiro’s February 13 lawsuit against five federal agencies.
- Federal courts had rejected the Trump administration’s funding pause, which Shapiro called unconstitutional.
- The money supports energy efficiency, well-plugging, and water system upgrades across Pennsylvania.
Trump Administration Relents on Funding
Governor Josh Shapiro revealed at a Monday news conference in Harrisburg that more than $2 billion in federal aid, once frozen or tangled in unspecified reviews, is now accessible to Pennsylvania’s state agencies. He had sued the Trump administration on February 13, accusing it of illegally withholding congressionally approved funds—a charge bolstered by federal courts repeatedly striking down the administration’s broad funding pause.
Shapiro, speaking after pressing his case with senior Trump officials in Washington, D.C., over the weekend, framed the release as a restoration of what’s rightfully Pennsylvania’s. The U.S. Attorney’s office in Philadelphia, representing the sued agencies, offered no immediate comment, while Trump lawyers in Rhode Island federal court had argued the freeze was a lawful “pause” to evaluate fund use, a stance weakened when the Office of Management and Budget rescinded its late January memo.
The freed-up funds, Shapiro noted, stem from major laws signed by former President Joe Biden, like the 2022 Inflation Reduction Act and 2021 infrastructure law—legislation conservatives often view skeptically. Despite this, Shapiro’s push ensured the money, already allocated by Congress, would reach Pennsylvania. He didn’t specify which agency actions shifted, but the Department of Energy—one of five named defendants alongside the White House Office of Management and Budget, EPA, and Interior and Transportation departments—claimed compliance with court orders, though it didn’t confirm releasing the specific funds Shapiro targeted.
Impact on Pennsylvania Programs
The lawsuit had spotlighted aid stalled for practical projects: upgrading home energy efficiency, plugging abandoned gas wells, cleaning up mine lands, improving municipal water and sewer systems, and reimbursing industries for cutting greenhouse gas emissions. Shapiro argued these delays violated the Constitution’s spending clause, a point federal courts echoed in rejecting the Trump administration’s freeze. While Trump lawyers in Rhode Island called the case moot after the OMB’s memo reversal, Shapiro’s suit—filed in Philadelphia federal court—pressed on, citing ongoing blocks.
Monday’s announcement suggests his pressure paid off, though the Department of Energy’s vague stance left unclear if all disputed funds are fully released.
