Judge Blocks Trump Admin From Using Biden Rule for Grant Cuts

A federal judge in Boston ruled on Friday that the Trump administration cannot utilize an obscure clause related to agency priorities to implement billions of dollars in federal funding cuts. This decision came in response to a lawsuit filed last year by 23 states, which alleged the administration was using the clause to reduce funding for critical areas such as crime prevention, food security, and scientific research. The states expressed concern that this interpretation of the clause would lead to the cancellation of both current and future grants.

U.S. District Judge Indira Talwani granted a summary judgment, effectively preventing the administration from relying on the "Termination Clause" for grant reductions. She also denied the government's motion to dismiss the case. Judge Talwani, nominated by President Barack Obama, stated in her written opinion that the defendants' interpretation of the Termination Clause is not clearly supported by the provision's text, contradicts the regulatory framework, lacks support in the rulemaking history, and would violate the Spending Clause's requirement for unambiguous conditions.

The lawsuit contended that the Office of Management and Budget had promulgated the use of this specific clause to justify what the plaintiffs described as a "nationwide slash-and-burn campaign." The clause, initially introduced in 2020 and revised in 2024, permits federal agents to terminate a grant if the award "no longer effectuates the program goals or agency priorities." The states argued that this language, which was put in place during the Biden administration, was being used for the first time to terminate grants.

New Jersey Attorney General Jennifer Davenport commented on the ruling, stating, "Instead of working with us to keep the public safe and lower costs for hardworking New Jerseyans, the Trump Administration has recklessly and illegally gutted federal funding for public safety, disaster preparedness, scientific research, clean water, and more." She further emphasized that the decision is a significant victory for New Jersey residents and confirms the Trump Administration's unlawful actions in its attempt to cut essential federal funding.