Pennsylvania Gov. Josh Shapiro says his trip to the White House helped unfreeze $2.1 billion in federal funds. The White House doesn't agree
Published in News & Features
Pennsylvania Gov. Josh Shapiro went to the White House last month on a mission: Get the federal government to unfreeze more than $2.1 billion in federal funds already allocated to the state.
Sitting alongside members of President Donald Trump's cabinet on Feb. 21 during a White House luncheon, including Director of National Intelligence Tulsi Gabbard and Secretary of Health and Human Services Robert F. Kennedy, Jr., Shapiro said he made his plea directly to members of Trump's cabinet and senior administration officials.
The stakes were high. Shapiro had sued the administration earlier that month, after weeks of working behind the scenes to unfreeze the funds proved unsuccessful. Following a since-rescinded Trump administration memo calling for a funding freeze on government grants and loans nationwide, Shapiro's suit said that billions in federal funds for Pennsylvania remained frozen or under an indeterminate "review" period that made them inaccessible, mostly for environment and energy projects.
But on this day in mid-February, Shapiro worked the room to restore his state's funding, according to new details disclosed by Shapiro's office about how Pennsylvania's first-term Democratic governor is navigating Trump's second administration.
Shapiro, who is up for reelection next year to continue leading the nation's fifth most-populous state and potential frontrunner for the 2028 presidential election, has been walking a political tight rope since Trump's election, strategically choosing when to challenge Trump and his administration and when not to engage.
But Trump's White House disputed Shapiro's timeline of events, accusing the governor of taking credit for something he played little part in.
"Governor Shapiro is lying," said Harrison Fields, a White House deputy press secretary, in a statement last week. "Agencies are reviewing all funds for consistency with the law, waste, and the administration's priorities. Pressure by governors is not one of those factors, and funds within Pennsylvania are being reviewed the same as everything else."
In response to the White House's claims, Shapiro's press secretary Manuel Bonder provided a detailed account of what Shapiro did to unfreeze the funds, adding that they "have the receipts." The White House still rejects his advocacy as having an impact.
"The Democratic Party is in shambles, so no wonder he's trying to look good," Fields added after reviewing Shapiro's timeline. "He is not telling the truth. He is overstating what he was able to do."
How Shapiro says the money was unfrozen
After the Trump administration first froze federal funds on Jan. 28 as part of his government-wide review, sending states and nonprofits into panic, Shapiro spent weeks making pleas to the administration behind the scenes with U.S. Sen. Dave McCormick, R-Pa., and other members of Pennsylvania's congressional delegation to release the money.
When Attorney General Dave Sunday, Pennsylvania's new GOP top prosecutor, declined to sue, Shapiro sued the Trump administration on Feb. 13 in his capacity as governor in an effort to free up the funds. In the suit, filed in the U.S. District of Eastern Pennsylvania, Shapiro claimed the federal freeze was illegal and unconstitutional because it had already been approved by Congress and federal courts had directed the administration to restore federal funding in other lawsuits.
But he had another avenue to try: Shapiro was scheduled to visit the White House on Feb. 21 as part of his visit to Washington, D.C., for the National Association of Governors, following his appointment by Trump to the Council of Governors, a little-known bipartisan panel of 10 governors nominated to two-year terms to strengthen partnerships between states and the federal government.
Shapiro came prepared to a White House governors' luncheon with a list of federal programs that state agencies could not access, a spokesperson said. He was asked at the luncheon by a senior administration official for a copy of his list of Pennsylvania's frozen programs.
"He provided it, and by the time the governor left the White House, he was informed that those funds were being unfrozen," Bonder said. "Later that evening, upon returning to Pennsylvania, the governor received a call from a senior [White House] official informing him that the funds were unfrozen."
After confirming the funds were accessible to Pennsylvania government officials again, Shapiro announced on Feb. 24 that the funds were restored — the first time he claimed it was his advocacy that released the billions in federal dollars.
A person close to McCormick said Shapiro's office asked McCormick's staff about the $2.1 billion in frozen funds in the weeks following the initial federal freeze. In the weeks between the January funding freeze memo and Shapiro's visit to the White House, McCormick's team reached out to the Trump administration "to help expedite the process" of unfreezing them.
"Agencies were cooperative and said the funds were unlocked," the person added.
At that point, some states, such as Colorado and Illinois, still did not have access to their funding halted in the nationwide freeze, while some school districts in other states began reporting as of Feb. 21 that they had regained access to the dollars allocated by the Environmental Protection Agency for at least one federal program.
Pennsylvania's direct federal funds for weeks have all been restored, but the full picture of how much federal money is still under review for nonprofits and municipalities that receive money or hold contracts directly with the federal government remains unclear.
Pennsylvania's budget relies heavily on federal funding. Approximately 40% of its annual spending comes from federal funds, estimated to about more than $50 billion for the upcoming fiscal year. With a $4.5 billion shortfall on the horizon for budget negotiations this year, Shapiro will need all of Pennsylvania's federal funding to come through.
Shapiro's lawsuit against the Trump administration is still pending in federal court.
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