Legal Battle Over Federal Grant Terminations
Democratic state attorneys general have filed a lawsuit against a Trump-era regulation allowing federal agencies to terminate grants based on shifting priorities. The lawsuit argues this violates Congress's control over funding. A recent court ruling supported Democratic claims, spotlighting ongoing bipartisan disputes over federal fiscal priorities.
In a significant legal development, Democratic state attorneys general filed a lawsuit on Tuesday challenging a key tool employed by the Trump administration to cancel federal grants.
The lawsuit, filed in a Boston federal court, claims the regulation adopted in 2020 by the White House Office of Management and Budget unlawfully permits agencies to terminate grants based on shifting priorities, impacting billions in funding.
The legal action underscores the ongoing tension as Democrats argue the regulation overrides Congress's authority, while the administration maintains its actions are within legal bounds.
(With inputs from agencies.)
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