State Attorneys General Challenge Trump-era Grant Regulation
Eighteen state attorneys general and Pennsylvania's governor have filed a lawsuit challenging the Trump administration's use of a regulation allowing federal grants to be canceled if they don't meet revised agency priorities. The lawsuit argues this practice unlawfully diminishes billions in funding for states and nonprofits.

The Democratic state attorneys general took legal action on Tuesday, filing a lawsuit that targets a regulation used by the Trump administration to cancel federal grants. They argue this rule has been unlawfully employed to cut billions in funding.
Submitted in Boston's federal court, the lawsuit includes 18 state attorneys general and Pennsylvania's governor, challenging a regulation the White House Office of Management and Budget established in 2020. This regulation empowers federal agencies to terminate grants if they no longer align with agency goals.
The Trump administration has defended its approach in court, maintaining it acted within its power. However, state attorneys contend the regulation cannot override congressional authority on grant allocations and resources should not be cut based on new agency priorities established after grant distributions.
(With inputs from agencies.)