{"id":1543679,"date":"2025-06-25T17:40:00","date_gmt":"2025-06-25T21:40:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1543679"},"modified":"2025-06-25T17:40:00","modified_gmt":"2025-06-25T21:40:00","slug":"21-states-sue-trump-admin-over-clause-used-to-cut-federal-funding","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/21-states-sue-trump-admin-over-clause-used-to-cut-federal-funding\/1543679\/","title":{"rendered":"21 States Sue Trump Admin Over Clause Used To Cut Federal Funding"},"content":{"rendered":"<p><span class=\"field field--name-title field--type-string field--label-hidden\">21 States Sue Trump Admin Over Clause Used To Cut Federal Funding<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><a href=\"https:\/\/www.theepochtimes.com\/us\/21-states-sue-trump-admin-over-clause-used-to-cut-federal-funding-5877991?utm_source=partner&amp;utm_campaign=ZeroHedge\"><em>Authored by Katabella Roberts via The Epoch Times,<\/em><\/a><\/p>\n<p>A coalition of 21 attorneys general from more than 20 states and the District of Columbia has filed a lawsuit against the Trump administration over a provision it used to justify cuts to billions of dollars in critical federal funding.<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/image%20-%202025-06-25T060833.362.jpg?itok=DTlQsRd0\"><\/a><\/p>\n<p>The <a href=\"https:\/\/theepochtimes.com\/assets\/uploads\/2025\/06\/25\/id5878023-agency-priorities-convenience-clause-complaint.pdf\">lawsuit<\/a>, filed in the U.S. District Court for the District of Massachusetts\u00a0by attorneys general from states including Arizona, California, Illinois, Massachusetts, Michigan, and New York, cites a <a href=\"https:\/\/www.ecfr.gov\/current\/title-2\/subtitle-A\/chapter-II\/part-200\/subpart-D\/subject-group-ECFR86b76dde0e1e9dc\/section-200.340\">clause<\/a> from the Office of Management and Budget that says a grant can be terminated if it \u201cno longer effectuates the program goals or agency priorities.\u201d<\/p>\n<p><strong>The suit lists dozens of federal agencies as defendants, including the Department of Agriculture, Commerce, Defense, Homeland Security, Justice, Labor, and State, as well as the Environmental Protection Agency.<\/strong><\/p>\n<p>The complaint states that since January, the Trump administration has directly cited language in the clause to unlawfully terminate critical funding expressly authorized by Congress and awarded to states for various projects and programs.<\/p>\n<p>The aims of the projects and programs include combating violent crime, educating students, protecting clean drinking water, conducting life-saving medical and scientific research, safeguarding public health, and addressing food insecurity, according to the lawsuit.<\/p>\n<p><em><strong>\u201cThe Trump Administration has claimed that five words in this Clause\u2014&#8217;no longer effectuates &#8230; agency priorities\u2019\u2014provide federal agencies with virtually unfettered authority to withhold federal funding any time they no longer wish to support the programs for which Congress has appropriated funding,\u201d<\/strong> the lawsuit states.<\/em><\/p>\n<p><em>\u201cAnd it has made a concerted decision, reflected in its uniform practice across a wide range of federal agencies, to invoke the Clause as grounds for terminating billions of dollars of federal funding to Plaintiffs.\u201d<\/em><\/p>\n<p>This has been done \u201cwithout any advance notice, without any explanation to the State recipients, and in direct contravention of the will of Congress,\u201d according to the complaint.<\/p>\n<p><strong>The attorneys general further argue that the administration\u2019s decision to invoke the clause as the purported basis for slashing the funding marks a dramatic departure from past practice and OMB\u2019s interpretation of the clause, which was first promulgated in 2020.<\/strong><\/p>\n<p><em><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/image%20-%202025-06-25T060908.888.jpg?itok=sLB1e_sX\"><\/a><\/em><\/p>\n<p><em>Protesters at a rally held by the American Federation of Government Employees of District 14 at the Office of Personnel Management in Washington, on March 4, 2025. Alex Wroblewski\/AFP via Getty Images<\/em><\/p>\n<p><em><strong>\u201cOMB never suggested, in either the 2020 or 2024 rulemaking, that a grant could be terminated even though the grant was continuing to serve the very goals for which the monies had initially been awarded, merely because the agency\u2019s priorities shifted midway during the use of the grant\u2014let alone with no advance notice,\u201d <\/strong><\/em>the complaint states.<\/p>\n<p>The attorneys general\u00a0are seeking a declaratory judgment stating that the OMB regulation does not permit the Trump administration to terminate funding that doesn\u2019t align with its priorities.<\/p>\n<p>Alternatively, the coalition is seeking to vacate the administration\u2019s decision to invoke the regulation as grounds for terminating the funding.<\/p>\n<p><strong>The Trump administration has argued it acted within its authority to freeze and cancel grant awards that did not reflect its priorities, including those supporting diversity, equity, and inclusion, and climate programs.\u00a0<\/strong><\/p>\n<p>The latest lawsuit is one of several that the coalition of mostly Democratic-led states has filed over the funding cuts.<\/p>\n<p><strong>White House spokesperson Harrison Fields said in a statement that Democrats pursuing the case \u201cshould focus on serving their constituents, not their party bosses, and work with the president and this administration to enact the agenda the American people overwhelmingly supported.\u201d<\/strong><\/p>\n<p>The Epoch Times has contacted the\u00a0White House\u2019s Office of Management and Budget for comment.<\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" class=\"username\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Wed, 06\/25\/2025 &#8211; 13:40<\/span><\/p>\n<p>\u200b<a href=\"https:\/\/www.zerohedge.com\/political\/21-states-sue-trump-admin-over-clause-used-cut-federal-funding\" target=\"_blank\" class=\"\">https:\/\/www.zerohedge.com\/political\/21-states-sue-trump-admin-over-clause-used-cut-federal-funding<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>21 States Sue Trump Admin Over Clause Used To Cut Federal Funding Authored by Katabella Roberts via The Epoch Times, A coalition of 21 attorneys&#8230;<\/p>\n","protected":false},"author":0,"featured_media":1543680,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1543679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1543679","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1543679"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1543679\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1543680"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1543679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1543679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1543679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}