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News In Brief Attorney General Courts

Federal judge sides with states in grant funding dispute

ByKrystal Knapp Jul 17, 2026Jul 19, 2026
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New Jersey helped lead lawsuit challenging termination of federal grants

A federal judge has ruled that the Trump administration cannot terminate billions of dollars in congressionally approved grant funds based solely on changing agency priorities, siding with a coalition of 24 states led by New Jersey, Massachusetts, and New York.

U.S. District Judge Indira Talwani of Massachusetts found that federal regulations do not give agencies broad authority to revoke grants simply because an administration changes its policy priorities after the funding has been awarded.

The lawsuit challenged the administration’s use of Office of Management and Budget regulations to end grants supporting programs including public safety, disaster preparedness, scientific research, clean water, and public health.

According to the New Jersey Attorney General’s Office, the administration has canceled millions of dollars in federal funding for programs in the state.

New Jersey Attorney General Jennifer Davenport said the ruling confirms the administration exceeded its legal authority by terminating previously awarded grants.

“The president and his allies cannot hold critical programs hostage to their personal whims and political ideologies, destabilizing the country by yanking essential federal funding that was already awarded to the states,” Davenport said.

Federal judge sides with states in grant funding dispute
Krystal Knapp
Web |  + postsBio ⮌

Krystal Knapp is the founder, executive director, and publisher of The Jersey Vindicator and the founder of Planet Princeton. She has more than two decades of experience reporting in New Jersey, including 10 years at The Trenton Times, where she was the newsroom’s public records and computer-assisted reporting expert. Her work has been recognized by the New Jersey Press Association and the Center for Cooperative Media. You can reach her at Krystal AT jerseyvindicator.org.

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