Pennsylvania Governor Reveals Major Funding Breakthrough: Trump Administration Unfreezes Billions in Grants and Loans

HARRISBURG, Pa. — Pennsylvania Governor Josh Shapiro announced on Monday that the Trump administration has released over $2 billion in federal aid that he previously claimed was being withheld unlawfully.

In a news conference, Shapiro explained that this funding, which had been frozen or under review, is now available to state agencies.

Shapiro filed a lawsuit in federal court on February 13 after courts challenged the Trump administration’s halt on federal funding. He expressed that the administration might have ignored court orders regarding this funding.

During a recent visit to Washington, D.C., Shapiro also urged Trump administration officials to address the issue. The U.S. attorney’s office in Philadelphia, which is involved in the lawsuit, has not provided comments.

In a separate federal court case in Rhode Island, lawyers for the Trump administration defended their freeze on funds, arguing it was a lawful pause to assess the best use of federal funding. They urged a judge to dismiss a request from several Democratic states for a preliminary injunction, stating that the Office of Management and Budget decided to lift its earlier freeze of federal grants.

Many of the funds in question were part of landmark legislation passed by Congress, including major climate and infrastructure bills signed by President Biden. Shapiro’s lawsuit highlighted that the withheld aid was intended for crucial programs, such as energy efficiency upgrades, cleaning up abandoned gas wells and mines, and supporting water systems.

Five federal agencies were named in the lawsuit, including the White House Office of Management and Budget and the Environmental Protection Agency. The Department of Energy stated it is following court orders but did not clarify whether it has released the funding Shapiro mentioned.