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NY Attorney General Letitia James Triumphs Over Trump Administration in Federal Agency Preservation Lawsuit

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Published on November 22, 2025
NY Attorney General Letitia James Triumphs Over Trump Administration in Federal Agency Preservation LawsuitSource: Wikipedia/WBLS, CC BY 3.0, via Wikimedia Commons

New York Attorney General Letitia James, along with a coalition of attorneys general from 20 other states, successfully challenged an executive order issued by the Trump administration. The United States District Court for the District of Rhode Island ruled in favor of the coalition, blocking the elimination of four federal agencies. The agencies involved, the Institute of Museum and Library Services (IMLS), the Minority Business Development Agency (MBDA), the Federal Mediation and Conciliation Service (FMCS), and the U.S. Interagency Council on Homelessness (USICH), had been designated for closure under the executive order.

The lawsuit, co-led by Attorney General James and supported by a group of state attorneys from Arizona to Wisconsin, was filed in response to an April executive order aimed at closing federal agencies that provide public services. According to a statement from the Attorney General's office, the recent ruling ensures "vital resources for workers, small businesses, and the most vulnerable in our communities" remain in place. Attorney General James stated that she is committed to "defend important services that New Yorkers rely on every day."

The legal action began in April when the coalition filed a lawsuit and continued in May with the securing of a preliminary injunction to pause the implementation of the executive order. In June, the coalition expanded the lawsuit to include the U.S. Interagency Council on Homelessness (USICH) after it was identified as being at risk. The coalition, led by Attorney General James, argued that the attempted agency eliminations exceeded executive authority and conflicted with congressional powers.

The court found that the administration’s actions were unlawful and blocked any future enforcement of the executive order. The ruling stated that closing agencies without Congress’s approval would violate the Constitution and the Administrative Procedure Act. The decision allows the Institute of Museum and Library Services (IMLS), which supports museums and libraries; the Minority Business Development Agency (MBDA), which provides support to minority-owned businesses; the Federal Mediation and Conciliation Service (FMCS), which handles labor disputes; and the U.S. Interagency Council on Homelessness (USICH), which works on homelessness, to continue operating.

The joint effort of Attorney General James, along with officials from Rhode Island, Hawaii, and other states, establishes a legal precedent that federal agencies authorized by Congress cannot be closed solely by the executive branch. The ruling ensures the continuation of federal agencies that provide public services relied upon by Americans.