Boston federal judge blocks Trump grant cuts

A federal judge in Boston has blocked the Trump administration from using a budget regulation to cancel billions of dollars in federal grants after they have been awarded, ruling that agencies cannot retroactively terminate funding simply because of shifting policy priorities. U.S. District Judge Indira Talwani issued the summary judgment on Friday, July 17, 2026, siding with a coalition of states that argued the administration overstepped its legal authority.

The lawsuit, filed in June 2025 by a group of 23 states and the District of Columbia, challenged the administration's reliance on a provision in the Office of Management and Budget's grant guidance. The clause states that a federal award may be terminated if it "no longer effectuates the program goals or agency priorities." The states contended that federal agencies, following an executive order issued in February 2025, began using this language to cancel or threaten grants that had already been approved by Congress, based on new priorities adopted after the awards were made.

Judge Talwani concluded that the regulation's text, history, and the constitutional Spending Clause do not support such a broad interpretation. She...