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Judge blocks Trump administration's use of grant termination clause

A federal judge has blocked the Trump administration from using a specific clause to terminate billions of dollars in federal grants. Twenty-three states sued, arguing the administration was misusing a clause intended for agency priorities to cut funding for essential programs like scientific research and public safety. The judge ruled that the administration's interpretation of the clause was not supported by the text and violated spending clause requirements. AI

RANK_REASON A federal judge ruled on a significant policy matter impacting federal grant funding. [lever_c_demoted from significant: ic=1 ai=0.1]

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Judge blocks Trump administration's use of grant termination clause

COVERAGE [1]

  1. Fortune TIER_1 English(EN) · Michael Casey, The Associated Press ·

    Trump officials were trying to use a Biden rule to gut billions in grants — a judge just said no

    New Jersey's AG says the cuts held "critical programs hostage" to political whims; the judge agreed the clause doesn't say what the administration claims.