U.S. District Judge Indira Talwani ruled that the administration cannot use an obscure clause to cut billions of dollars in federal grant funding.
U.S. District Judge Indira Talwani ruled on Friday that the administration cannot use a specific clause to terminate billions of dollars in federal grant funding simply because the projects no longer align with agency priorities. The decision prevents the administration from using a "slash-and-burn" approach to cut funding for programs already awarded to the states, such as public safety, scientific research, and clean water. The ruling came in response to a lawsuit filed by 23 states, including New Jersey, Massachusetts, and New York. These states argued that the administration’s interpretation of the Termination Clause was not clearly supported by the text and would violate the Spending Clause’s requirement for unambiguous conditions. New Jersey Attorney General Jennifer Davenport stated that the administration defied the law by attempting to hold critical programs hostage to personal whims. While the administration argued the lawsuit was speculative, the court confirmed that federal agencies do not have independent authority to revoke grants solely based on priorities identified after the funding was already issued.