California Attorney General Rob Bonta filed a lawsuit in federal court challenging the Trump Administration's decision to withhold billions in Congressionally appropriated funds.
The lawsuit, filed in U.S. District Court for the Northern District of California, contests the administration's announcement to rescind $810 million and impound other funds. The administration announced the rescission on September 25, 2026 — five days before the fiscal year ended on September 30. Bonta's office argues the impoundment violates the U.S. Constitution's Separation of Powers Clause, the Appropriations Clause, and the Presentment Clause, and constitutes unlawful agency action under the Administrative Procedure Act.
Bonta is leading a multistate coalition that includes the attorneys general of Maine, Maryland, Michigan, Nevada, New Mexico, and Oregon. The lawsuit contends that Congress, not the President, has the constitutional authority to appropriate and control federal spending.
As of September 30, other Congressionally appropriated funding remained unobligated and at risk of expiring, according to the attorney general's office, including funding for emergency services and education.
Bonta has previously secured court orders protecting an estimated $208 billion in federal funding for California, the office said. These protections cover funding for public safety, education, childcare, food assistance, healthcare, transportation, clean energy, museums, and libraries.