Agency Priorities

On June 24, 2025, a coalition of 21 attorneys general filed a lawsuit in Massachusetts challenging the Trump Administration's unprecedented and unlawful attempts to invoke a single provision buried in in the federal regulations to strip away billions of dollars in critical federal funding for states and other grantees. We argue that the regulation does not authorize federal agencies to terminate grants based on changes in agency preferences that occur after a grant is awarded. The lawsuit also notes the importance of obtaining clarity regarding the scope of this regulation, as states collectively accept hundreds of billions of dollars a year that are at risk of termination pursuant to this regulation.

New Jersey, et al v. US Office of Management and Budget