Illinois State Comptroller Susana Mendoza joins coalition of state leaders raising concerns about the unexpected clawback of federal funds from New York City

Today, Comptroller Mendoza, along with six other state financial officers co-signed a statement to the Trump administration in response to the more than $80 million dollars in federal funding that was unexpectedly withdrawn from accounts held by New York City.

In the statement, state officials stressed the need for fiscal stability and noted the dangers of the federal government reclaiming money that was specifically authorized by Congress to be sent to states and local governments.

“There are serious ramifications of unexpectedly and unilaterally siphoning money away from New York City and potentially other states,” says Comptroller Mendoza. “This recklessness could affect a state’s credit rating, the ability to pay bills on time and the status of vital services and programs. The unprecedented action imposes dangerous constraints on states and local governments by reneging on the federal government’s prior funding commitments.”

The state officials also pointed out the difficulty this imposes on states to craft an annual budget, meet contract obligations and maintain a stable economic outlook. They are urging the Trump administration to restore the withdrawn funds to New York City and ask for this sort of action to be avoided in the future.

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