Shapiro says federal funding for Pa. cut off by Trump administration is unfrozen

Gov. Josh Shapiro addresses reporters at the swearing-in ceremony for row officers on Jan. 21, 2025 (Capital-Star photo by Ian Karbal)

More than $2 billion of federal funding for Pennsylvania that had been cut off by the  Trump administration will be made available to the commonwealth.

Gov. Josh Shapiro made the announcement at a press conference on Monday.

The money was frozen as part of a sweeping set of orders from President Donald Trump aimed at reining in federal spending. Earlier this month, Shapiro’s office filed a lawsuit against five federal agencies over the looming loss of congressionally-approved money for Pennsylvania. Most of those dollars were for environmental programs like plugging abandoned oil and gas wells, building out clean-water infrastructure, and helping low-income households retrofit their homes to lower utility bills. Shapiro said all of the funding identified in the lawsuit would be unfrozen.

“With the funding restored, we will now resume critical programs and infrastructure projects that have been jeopardized by this illegal freeze,” Shapiro said. 

The lawsuit, though, will continue “until we obtain a final judgment or binding agreement requiring the Trump Administration to comply with its legal obligations,” according to Manuel Bonder, a spokesperson for Shapiro.

But Shapiro stressed the resumption of federal funding was not only the result of his lawsuit. The governor, who visited the White House on Friday, said  it was a result of both “pressure” and “direct engagement” with senior Trump administration officials.

“We are capable of walking and chewing gum at the same time,” Shapiro said. “Even after we filed our lawsuit 11 days ago, my team and I continued to engage with the Department of Justice and with the Trump administration directly.”

He also doubled down on his contention  the freezing of federal funds appropriated by Congress was illegal, noting “you don’t need to be a former attorney general or even a lawyer to understand this.”

Shapiro declined to elaborate on the details of his conversations with senior Trump administration officials.

“It’s a relief to hear that frozen federal funds are finally being released,” Democratic Rep. Elizabeth Fiedler, chair of the state House Energy Committee, said. “The Trump administration’s attempts to govern through Executive Orders is both unconstitutional and a sign of weakness, and holding crucial funding hostage hurts working people most.”

According to a study by Pew Charitable Trusts, more than 38% of Pennsylvania’s revenue in 2022 came from the federal government.