{"id":2631601,"date":"2026-07-18T09:43:02","date_gmt":"2026-07-18T13:43:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/judge-blocks-omb-from-retroactively-cutting-grants-to-states\/"},"modified":"2026-07-18T09:49:03","modified_gmt":"2026-07-18T13:49:03","slug":"judge-blocks-omb-from-retroactively-cutting-grants-to-states","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/judge-blocks-omb-from-retroactively-cutting-grants-to-states\/","title":{"rendered":"Judge blocks OMB from retroactively cutting grants to states"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fjudge-blocks-omb-from-retroactively-cutting-grants-to-states%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2631601&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A federal judge in Boston has blocked the Office of Management and Budget (OMB) from using a little-known grant termination clause to retroactively revoke billions of dollars in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-confirms-linda-mcmahon-as-trump-education-secretary-washington-examiner\/\" title=\"Senate confirms Linda McMahon as Trump education secretary ... Washington Examiner\">federal funding based<\/a> on changing agency priorities. Judge Indira Talwani rejected the Trump administration\u2019s attempt to dismiss a lawsuit filed by 20 states, three governors, and Washington D.C., which challenged the policy.The controversy centers on an OMB regulation allowing agencies to end grants if they no longer serve their original goals or align with agency priorities.The states argued that this clause was intended for adjustments within specific programs, not for canceling grants due solely to changes in administration policies. The judge ruled that federal law does not authorize grants to be terminated merely as priorities shift after award. The lawsuit claims that prior to President Trump\u2019s second term, agencies never used the clause to cancel grants for this reason, instead citing other reasons for termination. The decision is seen as a victory for the states, emphasizing that federal agencies cannot revoke funding based on new policy priorities without proper legal grounds.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">A federal judge in <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/boston\/\" type=\"post_tag\" id=\"828\">Boston<\/a> on Friday blocked the<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/omb\/\" type=\"post_tag\" id=\"1107\"> Office of Management and Budget<\/a> from using an obscure grant termination clause to revoke billions of dollars in federal funding based on shifting agency priorities.<\/p>\n<p class=\"wp-block-paragraph\">U.S. District Judge Indira Talwani, an appointee of former President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/barack-obama\/\" type=\"post_tag\" id=\"360\">Barack Obama<\/a>, denied the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/trump-administration\/\" type=\"post_tag\" id=\"339\">Trump administration\u2019s<\/a> request to dismiss a lawsuit brought by 20 states, three governors, and the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/district-of-columbia\/\" type=\"post_tag\" id=\"1483\">District of Columbia<\/a> challenging the policy.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4654384\/judge-block-omb-cut-grant\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Judge blocks OMB from retroactively cutting grants based on new rules<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4653731\/how-china-stole-voter-registration-220-million-us-citizens\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>How China stole voter registration from 220 million US citizens, according to declassified materials<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/4653767\/judge-rules-against-trump-firing-fema-cfo\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Judge rules against Trump\u2019s firing of FEMA CFO<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\">The states sued last year, arguing the administration had improperly invoked the clause to terminate grants supporting a range of programs, including universities, school lunch programs, violent crime prevention initiatives, and hate crime prevention efforts.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-1\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-1\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<\/div>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">At issue is a provision in OMB regulations allowing agencies to end a grant if it \u201cno longer effectuates the program goals or agency priorities.\u201d The language was first introduced in 2020 and revised in 2024 under the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/biden-administration\/\" type=\"post_tag\" id=\"445\">Biden administration<\/a>. The states argued it was intended to address changes to specific grant programs, not to allow agencies to cancel awards because a new administration adopted different policy priorities.<\/p>\n<p class=\"wp-block-paragraph\">In her ruling, Talwani <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.mad.286247\/gov.uscourts.mad.286247.122.0_1.pdf\">wrote<\/a> that the regulation\u2019s reference to grants that \u201cno longer effectuates \u2026 agency priorities\u201d does not give federal agencies broad authority to revoke previously awarded grants simply because their priorities have changed.<\/p>\n<p class=\"wp-block-paragraph\">The states argued that, before President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\" type=\"post_tag\" id=\"4\">Donald Trump\u2019s<\/a> second term, federal agencies had never used the provision to terminate grants solely because agency priorities shifted during the grant period. Instead, agencies cited the clause in termination letters that often stated only that the funded activity no longer aligned with current priorities.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-2\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-2\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">Talwani agreed, writing that federal law does not authorize agencies to terminate grants based on \u201cnew program goals or agency priorities\u201d identified after the award has been made.<\/p>\n<p class=\"wp-block-paragraph\"><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/foreign-policy\/4645290\/lindsey-graham-death-foreign-policy-ukraine\/\">GRAHAM\u2019S REPUTATION AS MAJOR FOREIGN POLICY VOICE EXEMPLIFIED BY FINAL DAY IN UKRAINE<\/a><\/strong><\/p>\n<p class=\"wp-block-paragraph\">\u201cInstead of working with us to keep the public safe and lower costs for hardworking New Jerseyans, the Trump Administration has recklessly and illegally gutted federal funding for public safety, disaster preparedness, scientific research, clean water, and more,\u201d New Jersey Attorney General Jennifer Davenport, who co-led the lawsuit, <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.njoag.gov\/ag-davenport-states-win-ruling-protecting-billions-in-critical-federal-funding\/\">said<\/a> in a statement.<\/p>\n<div class=\"wex-inarticle-ad wex-inarticle-ad-art-dsk-inart-3\">\n<div class=\"wex-ad-wrap wex-ad-art-dsk-inart-3\" style=\"min-height:90px\"><span class=\"wex-ad-label\" hidden>Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cToday\u2019s decision is an important win for all New Jerseyans and confirms that the Trump Administration defied the law when it embarked on its campaign to gut critical federal funding to the states,\u201d Davenport said. \u201cThe President and his allies cannot hold critical programs hostage to their personal whims and political ideologies, destabilizing the country by yanking essential federal funding that was already awarded to the states.\u201d<\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Judge blocks OMB from revoking grants based on changing priorities<\/p>\n","protected":false},"author":4195,"featured_media":2631602,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/06\/vought1-e1782838945838.jpeg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[49349,51601,43169,32546,82882],"class_list":["post-2631601","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-federal-grants","tag-government-funding-2","tag-judicial-ruling","tag-legal-decision","tag-state-rights"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/06\/vought1-e1782838945838.jpeg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2631601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/4195"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2631601"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2631601\/revisions"}],"predecessor-version":[{"id":2631605,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2631601\/revisions\/2631605"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2631602"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2631601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2631601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2631601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}