Legal Battle Intensifies Over Trump's Federal Grant Cancellations

Democratic state attorneys general intensified their legal battle against the Trump administration's practice of using federal regulations to terminate grants, filing a new lawsuit on Tuesday. This litigation, launched in Boston federal court, involves attorneys general from 20 states, alongside Pennsylvania's governor, challenging the administration's regulation.

The contested regulation, adopted by the White House Office of Management and Budget in 2020, grants federal agencies the power to cancel grants that no longer align with program goals or agency priorities. Critics argue this has led to billions being cut from programs supporting diversity, equity, and climate change initiatives.

This lawsuit follows a recent court ruling in Boston that sided with Democratic states, declaring several grant cancellations illegal. The state attorneys general claim that the Trump administration exceeded its authority by overriding congressional funding decisions, emphasizing Congress's constitutional budgeting power.

(With inputs from agencies.)