Attorney General James Sues Trump Administration Over Unlawful USDA Funding Conditions

March 23, 2026

NEW YORK - New York Attorney General Letitia James and 20 other attorneys general today filed a lawsuit against the Trump administration to block sweeping new funding conditions imposed by the U.S. Department of Agriculture (USDA) that jeopardize billions of dollars in funding for critical state programs. The lawsuit challenges USDA's new "2026 Conditions," which force states to comply with vague and unlawful policy requirements or risk losing essential funding for programs that feed families, support farmers, and protect communities. Attorney General James and the coalition are asking the court to block these conditions and protect states' access to funding already approved by Congress.

"The federal government cannot hold critical funding hostage to force states to comply with vague, ideological directives," said Attorney General James. "These new conditions put essential programs at risk and cause chaos for states that rely on this funding to feed families, support farmers, and keep communities safe. I will keep fighting to protect New Yorkers and ensure they receive the resources they depend on."

The USDA provides tens of billions of dollars each year to states to support a wide range of programs that sustain the nation's food system and rural economies, including agricultural research, farm support programs, forestry and wildfire prevention, and infrastructure that connects farms to markets. In New York, this funding supports farmers across the state, from dairy producers in the North Country to specialty crop growers in the Hudson Valley and Long Island, while also helping universities and research institutions develop new innovations that keep American agriculture competitive. In addition, USDA is responsible for some of the nation's most essential nutrition programs, including the school lunch program; Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); the Supplemental Nutrition Assistance Program (SNAP); and The Emergency Food Assistance Program (TEFAP).

This year, USDA introduced new requirements for funding recipients, stating that in order to receive funding allocated by Congress, states must certify compliance with broad, undefined federal "policies." These conditions apply to nearly all USDA programs, and include restrictions related to "gender ideology," immigration, "fair athletic opportunities," and other political priorities. However, Attorney General James and the coalition contend that these conditions fail to clearly define which conduct is prohibited, leaving states to guess how to comply while facing the threat of severe financial penalties.

If allowed to take effect, these conditions could have devastating consequences in New York. Millions of New Yorkers who depend on government assistance to put food on the table could see benefits threatened or delayed. WIC funding that supports pregnant people, infants, and young children could be put at risk, jeopardizing lifesaving health and nutrition services. Emergency food providers across the state could lose support, even though demand for food assistance remains high.

The conditions would also profoundly harm New York's agricultural sector. Farmers could lose access to critical grant programs that support crop production, pest and disease management, and sustainable farming practices. State agencies and universities could lose funding for agricultural research that drives innovation in food production, provides essential support to New York farmers, and strengthens supply chains. Programs that connect local farms to schools and communities could be disrupted, weakening local food systems and regional economies. In addition, forestry and wildfire prevention programs supported by USDA funding could be impacted, reducing the state's ability to manage forests, prevent wildfires, and protect natural resources.

Attorney General James and the coalition argue that these requirements are unconstitutionally vague and are clearly meant to coerce states into adopting federal policy preferences. They also argue that the conditions exceed USDA's legal authority and were imposed without following required legal procedures. The attorneys general have asked the court to prohibit USDA from implementing or enforcing the illegal conditions.

Joining Attorney General James in filing this lawsuit are the attorneys general of California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Virginia, Washington, Wisconsin, and the District of Columbia.