A federal judge in Boston has ruled that the Trump administration cannot use an obscure clause to make billions of dollars in funding cuts. The clause, introduced in 2020 and revised in 2024, allows federal agents to terminate grants if they no longer align with agency priorities.
Twenty-three states had filed a lawsuit accusing the administration of using the clause to cut funding for various programs, including crime prevention, food security, and scientific research. The judge granted a summary judgment preventing the administration from relying on the clause to make cuts.
The decision is seen as a significant win for the states, with New Jersey Attorney General Jennifer Davenport stating that the Trump administration had 'recklessly and illegally gutted federal funding' for critical programs. The ruling prevents the administration from terminating grants based on the disputed clause, but it is unclear what the next steps will be.
