politics
Judge Blocks OMB Grant Termination Policy and Denies Administration Request to Dismiss Lawsuit
U.S. District Judge Indira Talwani on Friday denied a request to dismiss a lawsuit by 20 states and the District of Columbia. The ruling prevents the Office of Management and Budget from terminating grants solely because agency priorities have shifted since the awards were made.
Jul 18, 9:21 AM·1m read2 sources
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U.S. District Judge Indira Talwani in Boston on Friday blocked the Office of Management and Budget from using a grant termination clause to revoke billions of dollars in federal funding based on shifting agency priorities. Talwani denied the Trump administration’s request to dismiss a lawsuit brought by 20 states, three governors, and the District of Columbia.
The states filed the case last year after agencies invoked the clause to terminate funding for universities, school lunch programs, violent crime prevention, and hate crime prevention efforts. The clause language was first introduced in 2020 and revised in 2024 under the prior administration.
In her ruling, Talwani wrote that the regulation does not authorize agencies to revoke previously awarded grants simply because priorities have changed.
Federal law, she stated, does not permit termination based on “new program goals or agency priorities” identified after an award has been made. Before the current term, agencies had not used the provision solely for priority shifts during the grant period.
