AG Nessel Statement on First Circuit Decision Blocking Federal Funding Withholding

AG: Michigan News

Filed March 17th, 2026

Detected March 18th, 2026

Summary

Michigan Attorney General Dana Nessel released a statement on the First Circuit Court of Appeals largely upholding a lower court order that blocks the Trump administration from withholding trillions of dollars in federal funding. This decision protects essential programs like Medicaid and Head Start for millions of residents.

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What changed

Michigan Attorney General Dana Nessel announced that the U.S. Court of Appeals for the First Circuit has largely upheld a lower court's order, preventing the Trump administration from withholding trillions of dollars in federal funding from states. This legal action, initiated by a coalition of 22 attorneys general in January 2025, challenged a federal policy deemed unconstitutional for its potential to harm essential public services such as Medicaid and Head Start.

The appellate court's decision affirms a preliminary injunction secured in March 2025, reinforcing the protection of critical federal programs that states rely on. Attorney General Nessel emphasized her commitment to defending the rights of Michiganders and upholding the rule of law against what she described as unlawful attacks on congressionally funded programs. The ruling has significant implications for intergovernmental fiscal relations and the continuity of essential state-level services.

Source document (simplified)

AG Nessel Releases Statement on First Circuit Decision Upholding Decision Blocking Trump Administration from Withholding Critical Federal Funding

March 17, 2026

LANSING – Michigan Attorney General Dana Nessel today released the following statement after the U.S. Court of Appeals for the First Circuit largely upheld a lower court order blocking the Trump administration’s illegal effort to categorically block trillions of dollars in essential federal funding to states (PDF):

“Blocking these critical federal funds would have harmed millions of Michigan residents who rely on essential federal programs like Medicaid and Head Start. I am relieved that another court ruled this directive unconstitutional and recognized that it undermines the wellbeing and safety of the people across the country. I remain committed to defending the rights of Michiganders and the rule of law, including holding the federal government accountable for unprecedented and unlawful attacks on congressionally funded federal programs.”

In January 2025, Attorney General Nessel joined a coalition of 22 other attorneys general in suing to stop the implementation of a federal policy that would have categorically withheld trillions of dollars in essential funding, impacting a vast array of important public services that states provide. In March 2025, Attorney General Nessel won a preliminary injunction blocking the policy, and yesterday, the U.S. Court of Appeals for the First Circuit largely affirmed that order.

MI Newswire Attorney General Press Release Federal Actions Media Contact:

Danny Wimmer

Press Secretary

agpress@michigan.gov

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