A group of Democratic state attorneys general plan to file a lawsuit on Tuesday challenging the Trump administration's sweeping directive to temporarily freeze federal loans, grants and other financial assistance,

The great promise of our nation is that everyone born here is a citizen of the United States, able to achieve the American dream,” said Attorney General James.

The freeze became public thanks to a leaked memo in which the White House’s budget office ordered federal agencies to pause all financial assistance related to foreign aid, nongovernmental organizations,

The White House said the pause will not include direct assistance, as New York Attorney General Letitia James leads a lawsuit to stop the pause.

The challenge comes amid uncertainly over funding for city agencies and nonprofit organization, and as states, including New York, are already reporting funding issues.

The Trump administration's freeze on federal loans and grants is being challenged in court on multiple fronts.

Federal aid is a major source of revenue for states. According to Pew Charitable Trusts, federal grants represented 36.4% of total revenue for state governments in fiscal year 2022.