On July 17, 2026, a federal judge ruled in favor of a coalition of 21 attorneys general and three governors who sued over the Trump administration’s approach to grant terminations. According to the lawsuit, since the Trump administration began its second term, it has terminated billions of dollars in federal grants, including for school lunch programs, because they no longer align with the federal government’s goals.
Pursuant to the ruling, federal officials cannot cancel existing grants simply because they don’t align with new government priorities. In fact, federal regulations and the U.S. Constitution’s spending clause prohibit the administration from canceling existing grants based on such a reason.
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