Seven US states sue Trump administration over withheld funds

The Continental · 2 October 2026

US Capitol from Library of Congress

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California joins six other states in challenging the handling of Congress-approved money.

California and six other states filed a lawsuit accusing the Trump administration of withholding funds approved by Congress, Reuters reported on 1 October. The dispute includes roughly $810 million the White House moved to cancel before the fiscal year ended. These are the states’ allegations. Filing a case is not a judicial finding that the administration acted unlawfully.

Reuters · 1 October · allegations in pending lawsuit · Reuters source credit · may require subscription

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