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21 States and DC Challenge Trump’s Use of OMB Rule to Cancel Billions in Grants

They argue the rule was intended for narrow, evidence-driven terminations, making its broad use an overreach of executive spending authority.

Overview

  • A coalition of 21 Democratic attorneys general and the District of Columbia filed suit in Boston federal court to block the Trump administration’s termination of federal grants.
  • The lawsuit targets a 2020 Office of Management and Budget regulation clause that lets agencies end grants if they “no longer effectuates the program goals or agency priorities.”
  • Plaintiffs contend the regulation was meant for limited, evidence-backed cases and not for sweeping policy shifts after grant awards.
  • The funding cuts have affected education, healthcare, crime prevention, scientific research and other programs previously approved by Congress.
  • The case follows multiple state-led challenges that have temporarily halted similar cuts and could redefine the balance between executive action and congressional budget authority.