New York Attorney General Letitia James is pushing back against the Trump administration after federal officials halted payments to the state of New York.

New York State Attorney General, Letitia James, walks the Pride March route, Sunday, June 30, 2024, in New York City.

In a press conference, James denounced the move, calling it “unacceptable, unconstitutional, ultra-bias.” She accused the administration of exceeding its authority.

“It is important that Attorneys General representing our respective states stand up and enforce the rule of law. The Treasury and the President of these United States are not above the law,” James stated.

Elon Musk Called This Financial News 'Terrifying'

The funding halt comes as James faces mounting legal challenges.

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Just two days earlier, Attorney General Pam Bondi announced that the Department of Justice had filed charges against the state of New York, Governor Kathy Hochul, James, and DMV Commissioner Mark Schroeder.

The lawsuit accuses state officials of failing to enforce immigration law and maintaining sanctuary policies that conflict with federal statutes.

Bondi emphasized that the DOJ is focused on ensuring public safety and holding state leaders accountable.

The legal battle is unfolding as James and other attorneys general attempt to block Elon Musk’s Department of Government Efficiency (DOGE) from accessing Treasury Department records.

Attorneys general from 18 states have joined a lawsuit against the Trump administration, alleging that DOGE, under Musk’s direction, improperly accessed the Treasury Department’s central payment system.

The lawsuit, led by James and Connecticut Attorney General William Tong, was filed in federal court in Washington, D.C., on February 7.

It argues that DOGE’s actions exposed Americans’ private financial information and should have been carried out only by a government official confirmed by the Senate.

During a press conference, James criticized Musk’s involvement in the administration’s efforts.

“Elon was not voted in by the people,” James said, according to AMNY. “The American people deserve better. We will be in the courthouse time and time again. The American people will not back down.”

The legal dispute escalated further on Friday when U.S. District Judge Jeannette Vargas in Manhattan extended a temporary restraining order preventing DOGE from accessing Treasury Department systems that process trillions of dollars in payments.

The decision, reported by Reuters, maintains the order initially issued last Saturday.

Judge Vargas has yet to issue a final ruling on a request from 19 Democratic attorneys general seeking a preliminary injunction to block DOGE’s access on a longer-term basis.

The court battle over Treasury Department records and state funding is expected to continue in the coming weeks as both sides prepare for further legal proceedings.

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