Gov. Matt Mead says Wyoming has no legal recourse to block federal budget cuts required by sequestration.
The state's best hope now is to work through its congressional delegation, Mead said Friday during a news conference.
The Department of the Interior is withholding $53 million of Wyoming's share of federal mineral royalties and an additional $1.5 million of abandoned land reclamation money.
Mead and other state officials had claimed the federal action is illegal because the money is obligated to the state.
Mead said he told Attorney General Gregory Phillips he wanted to pursue legal action if there was a "snowball's chance" of success.
"The word back is there is no snowball," Mead said.
Wyoming and New Mexico, he said, appear to be the states hardest hit by the budget reductions.
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