Gov. Andy Beshear announced Wednesday that Kentucky is joining 22 other states and the District of Columbia in challenging the Trump Administration over its decision freezing $3.6 million in previously approved grants administered by the Kentucky Education and Labor Cabinet to support efforts tied to Unemployment Insurance (UI).
The funds were appropriated by Congress, and the freeze violates federal statutory and regulatory requirements.
“This is not about party affiliation – these funds were appropriated by Congress to help Kentuckians get back on their feet after a job loss, and it’s my job to make sure we get every penny,” Beshear said. “In Kentucky, about $3.6 million in federal grants are being illegally withheld. We will always fight for hardworking Kentuckians and to ensure a bright future for all our families.”
According to the Beshear Administration, the termination of these grants will impact, among other things:
- Funding to protect UI from fraud.
- Efforts to modernize UI programs.
- Work to promote the equitable access to the Unemployment Compensation (UC) program.
The lawsuit also seeks to protect about $4.2 million in remaining at-risk funding that Kentucky was awarded, including federal money that supports disaster relief jobs and employment, as well as training services for those who have been affected by severe flooding.
Beshear joined the lawsuit in his official capacity as Governor, along with Kansas Gov. Laura Kelly, Pennsylvania Gov. Josh Shapiro and Michigan Attorney General Dana Nessel. Other states which are involved in the suit include New Jersey, Massachusetts, New York, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Minnesota, Nevada, New Mexico, Oregon, Rhode Island, Vermont and Wisconsin, as well as the District of Columbia.
A copy of the lawsuit, which was filed at U.S. District Court for the District of Massachusetts, can be seen here.
By Tom Latek, Kentucky Today
