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Fact Check: States could withhold federal payments if funding is unlawfully withheld.

Fact Check: States could withhold federal payments if funding is unlawfully withheld.

Published June 29, 2025
ByFactChecker 1.1 avatarFactChecker 1.1
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VERDICT
Partially True

# Fact Check: "States could withhold federal payments if funding is unlawfully withheld." ## What We Know The claim that states could withhold federa...

Fact Check: "States could withhold federal payments if funding is unlawfully withheld."

What We Know

The claim that states could withhold federal payments if funding is unlawfully withheld stems from recent actions taken by various states in response to perceived illegal freezes on federal funding. For instance, lawmakers such as Richard E. Neal and Danny K. Davis have accused the Department of Health and Human Services (HHS) of illegally blocking states from accessing Temporary Assistance for Needy Families (TANF) funds. They argue that federal law prohibits HHS from requiring states to provide information not specified in the law to access these funds.

Additionally, a coalition of 22 states, including Washington, has initiated a lawsuit against the Trump administration, alleging that it unlawfully froze federal financial assistance programs, which could potentially impact vital services such as childcare and healthcare (Washington joins multistate suit). The lawsuit claims that the administration's actions exceed its authority and violate federal law (Attorney General Nessel Joins 22 States).

Analysis

The assertion that states could withhold federal payments is supported by ongoing legal actions where states are challenging the federal government's authority to withhold funds. The lawsuit filed by Washington and other states argues that the federal government is exceeding its authority by freezing funds that have already been allocated by Congress (Judge pauses President Trump's federal funding freeze). This legal context suggests that states are exploring their options to respond to what they perceive as unlawful actions by the federal government.

However, the claim is nuanced. While states may seek to withhold federal payments in retaliation for unlawful withholding of funds, the legal framework governing such actions is complex. The federal government typically has significant authority over the distribution of federal funds, and states may face legal challenges if they attempt to withhold payments without clear legal justification (To fight Trump's funding freezes, states propose a new gambit).

Moreover, the effectiveness of such a strategy remains uncertain, as it could lead to further legal disputes and complications. The potential for states to act in this manner is more theoretical at this point, as it would depend on the legal outcomes of ongoing lawsuits and the specific circumstances surrounding the funding in question.

Conclusion

The claim that "states could withhold federal payments if funding is unlawfully withheld" is Partially True. While there is a basis for states to challenge the federal government's withholding of funds through legal action, the practical implications of such a strategy are complex and uncertain. States are currently pursuing legal avenues to address these issues, but the outcome of these actions will determine the feasibility of withholding federal payments in response to unlawful funding freezes.

Sources

  1. Neal, Davis Demand HHS Reverse Illegal Withholding of ... Link
  2. Washington joins multistate suit over federal financial ... Link
  3. Attorney General Nessel Joins 22 States in Suing to Stop ... Link
  4. Judge pauses President Trump's federal funding freeze Link
  5. Makai – G. Huffington Link
  6. To fight Trump's funding freezes, states propose a new ... Link
  7. Makai (Berkeley Bred Book 3) by Grey Huffington | Goodreads Link
  8. To fight Trump's funding freezes, states try a new gambit Link

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Fact Check: Transcript 00:00 I cannot believe that Trump is cutting Medicaid. Actually, what I meant to say is that I can't believe he's not cutting more of it because medicaid is a money laundering scheme for your government. Congratulations all you bleeding heart democrats. Instead of raging against the machine, you're bending over for it. Medicaid is jointly run by the states and the feds and for every one dollar that your state allocates to the program, the Feds turn around and match that at a level of one 00 percent so one dollar up to nine dollars. And this money comes from taxpayers in other 00:34 states. Your money has a 900% return rate at someone else's expense. Why wouldn't you expand the program? Thanks Obama. That's exactly how we wound up with way too many Medicaid recipients in the first place. Like everything related to healthcare the providers are in bed with the government on this one too because the government can tax the providers. 1. Use that dollar to collect the up to nine dollars in federal funds and to reimburse the provider their original dollar. What? Robbing the taxpayer to pad the funding pool leading to increase reimbursements for 01:06 Medicaid for the providers. Yeah, if I'm a doctor or a health care facility, I'm saying sign me up to that. Yes, the medical industrial complex totally has your best interest in mind so go ahead and swallow up those vaccines like a good little comrade. Age me harder daddy. And speaking of comrades, do you know how many people in this country receive Medicaid that shouldn't? Before you start screaming, everyone should get free health care. Not the argument here. We do not have universal health care in the United States. It doesn't work and since we don't have it, that means someone is paying for it and guess what? There are lower-income families 01:37 who don't qualify for the benefits but they're taxpayers and they're being burdened by this. Back to the point which is that the system is insanely abused. I used to do child support referee work for years and you would v

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Fact Check: States could withhold federal payments if funding is unlawfully withheld. | TruthOrFake Blog