Speaking outside of the New York Conference of Mayors' winter legislative meeting, state Attorney General Letitia James made her point clear: The Trump administration’s proposed federal funding freeze, which was blocked by two federal judges in part thanks to a 22-state effort that James played a key role in, is a local funding issue.
“The president of the United States cannot unilaterally disrupt funding that has been appropriated by Congress on a whim,” she said. “It’s all about enforcing the law in the state of New York and ensuring that for individuals who rely on essential services, that there is someone who can use the law book as a sword and as a shield.”
James cited local law enforcement agencies and those who rely on Medicaid as especially vulnerable to funding disruptions that could come from such “whims.”
“Funding for Meals on Wheels, funding for fire, funding for law enforcement, those were paused as a result of that executive order,” she said. “As a result of the work of the Office of the Attorney General, we joined with other Democratic attorney generals across the nation and filed a lawsuit. And we were able to secure a temporary restraining order.”
A second injunction from a different judge was extended Monday. Administration officials have caused further confusion by arguing that the memo directing the federal funding freeze was rescinded, but any executive orders behind it were not.
The conference is intended to focus on state-level legislative issues and state funding in particular. Assemblymember Billy Jones is chair of the Assembly Committee on Local Governments, and spoke of efforts to make last year’s long-awaited increase in AIM, or Aid to Municipalities, a regular exercise.
“We’re talking about AIM funding that’s in the budget, to possibly increase that.” he said.
AIM is unrestricted state money that can be used by communities to pay for various things like supplies and wages for police officers and firefighters. The need for more cash to keep up with inflation and rising costs is a perennial issue in Albany.
“It’s important to listen to the mayors because they run the local government,” Jones said. “They provide services that certainly local residents need and depend on.”
Despite panels and discussion groups focused on state government, it was impossible to ignore the impact of federal uncertainty on local municipalities.
Jones raised questions about the impact of now-paused tariffs on Canadian goods on the North County, as well as the confusion raised by the Trump administration over the status of federal funding.
“When you have uncertainty, it’s not good for the markets and it's not good for local governments,” he said.
Even Republican Assemblymember Scott Gray called on the Trump administration to be more transparent about what’s coming down the pike when it comes to grants and loans.
“You have to articulate some sort of plan, people have to know what’s going on,” he said. “You just can’t pull out funding without a moments notice.”
State Comptroller Tom DiNapoli said he is concerned about the potential impact of a loss in federal funding on out year budget gaps, cautioning that relying on reserves to make up any difference could put the state at risk in the event of a financial crisis.
“Nobody has a crystal ball as to where this economy is going,” he said. “Although our reserves are at a historic high, there is no additional contingency put in there as far as what will happen with federal cutbacks.”
Lt. Gov. Antonio Delgado also spoke but did not take questions from reporters.