A federal judge declared Friday that the Trump administration can’t cancel grants based on new rules or goals established after the fact — in a blow to its efforts to terminate billions of dollars already promised.
U.S. District Judge Indira Talwani, an Obama appointee, denied the Trump administration’s request to dismiss a lawsuit brought by 20 states, three governors and the District of Columbia challenging the cancellation of billions of dollars in federal grant awards since President Donald Trump was inaugurated last year.
Federal law does not allow the “terminations of awards based on new program goals or agency priorities that an agency identifies after granting the award,” the court concluded.
The ruling comes as lawmakers in both parties, including Senate Appropriations Chair Susan Collins (R-Maine), urge White House Budget Director Russ Vought to delay plans to overhaul the approval process for federal grants. The Trump administration is proposing a new regulation that would put political appointee in charge of approving or nixing awards for federal dollars.
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