Judge blocks OMB from retroactively cutting grants based on new rules

Published July 18, 2026 9:21am ET



A federal judge in Boston on Friday blocked the Office of Management and Budget from using an obscure grant termination clause to revoke billions of dollars in federal funding based on shifting agency priorities.

U.S. District Judge Indira Talwani, an appointee of former President Barack Obama, denied the Trump administration’s request to dismiss a lawsuit brought by 20 states, three governors, and the District of Columbia challenging the policy.

Already a print subscriber? Click here to login/register your account

Trusted reporting.Unlimited access.

Subscribe for full access to Washington Examiner coverage, expert political analysis, and subscriber-only journalism.

Get Unlimited Access

Already a member? Log in

Cancel anytime.