Kentucky joins multistate lawsuit challenging federal funding freeze

FRANKFORT, Ky., (KBSI) — Gov. Andy Beshear announced Thursday that Kentucky is joining 22 other states and the District of Columbia in a lawsuit challenging the Trump administration’s decision to freeze $3.6 million in federal grants.

The grants, administered by the Kentucky Education and Labor Cabinet, were intended to support Unemployment Insurance efforts, including fraud protection, program modernization and equitable access.

Beshear said the frozen funds, which were appropriated by Congress, are crucial for helping Kentuckians affected by job loss.

The lawsuit also seeks to protect an additional $4.2 million in at-risk funding awarded to Kentucky for disaster relief jobs, employment and training services.