Colorado pledges to sue over Trump funding freeze
Business, government, nonprofit leaders scramble to gauge impacts
DENVER — Colorado Attorney General Phil Weiser said on Tuesday that he plans to sue President Donald Trump’s administration in an effort to block a sweeping proposal to suspend federal spending and grant programs.
Trump’s spending-freeze mandate, the impacts and details of which are entirely unclear, was issued in a memo Monday from the federal Office of Management and Budget and was scheduled to go into effect Tuesday afternoon. Just minutes before the freeze was to be implemented, U.S. District Judge Loren L. AliKhan temporarily blocked the Trump administration’s action until Monday, Feb. 3, according to the Associated Press.
The OMB memo has sent state government officials across the country into scramble mode as the spigot of federal money used to fund everything from universities to nonprofit organizations to research laboratories to hospitals appears at risk. Trump administration officials have said that the freeze includes exemptions for Social Security and Medicaid, but there were reports on Tuesday of widespread disruptions to the health-care program’s online portals.
SPONSORED CONTENT
“The Trump White House freeze on congressionally mandated federal aid is reckless and unprecedented,” said Weiser, a former University of Colorado Boulder professor who declared three weeks ago his intent to run for Colorado governor in 2026. “This action takes the power of the purse away from Congress, violates the separation of powers, and is already causing massive harm in Colorado, undermining delivery of health care, education and public safety. As attorney general, I will continue to defend Coloradans and the Constitution. This government funding shutdown is illegal and must be stopped by the courts. That is why I will join other state attorneys general in filing a lawsuit to do just that.”
Gov. Jared Polis, who has faced criticism from some Democrats who say he’s shown too much willingness to cozy up to Trump on certain issues, confirmed the state’s intent to mount a legal challenge to the funding freeze.
“Governing is about delivering real results for the people we serve, not sowing chaos. This indefinite pause in Congressionally appropriated federal funding hurts children and hardworking families, jeopardizes American jobs and businesses, harms hospitals and safety-net health providers, threatens road and bridge repairs, and impacts countless other programs. These federal investments help people and support good-paying jobs and our economy, and this sloppy action creates confusion that distracts from Americans’ real challenges,” Polis said in a statement. “Since day one, I’ve been focused on saving Coloradans money, expanding education access, reducing health-care costs, and improving affordability for everyone in our state. I’m always open to ideas from anyone about how we can make government more efficient and better deliver for fellow Coloradans. Still, chaotic actions like this do not make our country better off. We hope that this senseless action is reversed urgently before too much damage is done to people and businesses.”
What that potential damage to businesses could look like remains unknown.
Dozens of Boulder Valley and Northern Colorado businesses — particularly startup technology companies in industry clusters such as aerospace and life sciences — rely on federal Small Business Innovation Research and Small Business Technology Transfer grants for their operations. On Tuesday, “a Pentagon spokesman told Defense News the department does not believe the (SBIR and STTR) programs fall within the scope” of the OMB memo that authorizes the funding pause, according to Defense News, which reports on the U.S. military and defense industries.
Colorado Nonprofit Association CEO Paul Lhevine said in a Tuesday statement that his group is “deeply alarmed” by Trump’s funding decision.
“Federal funding is critical for nonprofits to fulfill their missions — whether supporting senior citizens, addressing youth mental health, or improving food access. This pause jeopardizes their ability to serve communities effectively and must be reversed immediately,” Lhevine said. “Beyond the crippling impact to our sector, the directive perpetuates a harmful narrative, suggesting nonprofits are responsible for the challenges our nation faces rather than being vital partners in addressing them. This rhetoric undermines trust in the nonprofits – many of which have been working to help solve societal issues for decades – and shifts blame away from systemic issues, which only worsens the problems we collectively aim to solve.”
Colorado Attorney General Phil Weiser said on Tuesday that he plans to sue President Donald Trump’s administration in an effort to block a sweeping proposal to suspend federal spending and grant programs.
THIS ARTICLE IS FOR SUBSCRIBERS ONLY
Continue reading for less than $3 per week!
Get a month of award-winning local business news, trends and insights
Access award-winning content today!