A federal judge in Boston on Friday blocked the Trump administration from using an obscure grant termination clause to revoke billions of dollars in federal funding based on shifting agency priorities. U.S. District Judge Indira Talwani, an appointee of former President Barack Obama, denied the administration’s request to dismiss a lawsuit brought by 20 states, three governors, and the District of Columbia. The states argued the administration improperly invoked the clause to terminate grants supporting programs like universities, school lunch initiatives, violent crime prevention, and hate crime prevention efforts.
Judge Talwani granted a summary judgment preventing the administration from relying on the clause to make cuts. The clause, introduced in 2020 and revised in 2024, allows federal agencies to terminate grants if they no longer align with program goals or agency priorities. The states argued the Biden administration had implemented the language, and the Trump administration was using it for the first time to justify cuts.
New Jersey Attorney General Jennifer Davenport criticized the administration’s actions, stating they recklessly gutted funding for public safety, disaster preparedness, scientific research, and clean water. The ruling was seen as a victory for the states involved in the lawsuit.