All 50 States Sound Alarm on Trump’s Plan to Hijack $1 Trillion in Federal Grants

For immediate release: July 14, 2026
Media contact: six@fenton.com

Washington, DC – State legislators and local government officials from all 50 states are urging the Trump administration to abandon a proposal they say would allow politics — not community needs — to determine who receives more than $1.1 trillion in federal funding each year.  The effort is being led by the State Innovation Exchange (SiX), National Women’s Law Center (NWLC), and Public Rights Project.

Announced by the Office of Management and Budget (OMB), the proposed rule calls for federal grant recipients to comply with conditions that include the “President’s priorities,” a change to the typically unbiased, fact-driven approval process, or risk losing access to federal grants. 

“The Proposed Rule would exacerbate existing budget pressures facing our states and the affordability crisis impacting our residents and would undermine the core responsibilities we were elected to carry out: responding to the needs of our residents and helping them all thrive,” wrote state lawmakers in a letter to OMB. “We firmly oppose this attempt by the administration to coerce and commandeer state policymaking and governance, undermine the rights of communities it disfavors, and weaken the programs that provide critical services to our constituents.”

“In short, these provisions, which permit agencies to temporarily or permanently interrupt a grant for undefined and thus a potentially boundless set of reasons, upend the entire federal grantmaking process,” wrote a coalition of local governments. “They transform a system intended to provide stable sources of funding for critical services that Congress has required into one that allows for politicized, punitive, retaliatory, or arbitrary decisions to terminate federal grant awards on a whim of the Executive Branch. They create an environment of uncertainty and place grantees under a permanent threat of cancellation.”

SiX, NWLC, and Public Rights Project are leading two parallel efforts to get as many state and local government voices as possible on the record with OMB to underscore the immense dangers of this proposed rule:

• One of the letters was signed by state lawmakers and led by NWLC and SiX. Click here to read the full letter.
• The other letter was signed by local governments and officials and led by Public Rights Project. It warns of dire impacts on communities across the country that rely on federal money for disaster relief, health care, housing and other essential services. Click here to read the full letter.

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About State Innovation Exchange (SiX)

State Innovation Exchange (SiX) is a national resource and strategy center that supports state legislators in advancing transformative policy and building a more equitable democracy. SiX partners with lawmakers to promote sustainable, people-centered solutions that strengthen communities and improve lives.