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US judge says Trump administration cannot revoke grants that conflict with its priorities

The ruling blocks an obscure agency-priorities clause that states said could cut billions in grants for public safety, research and other programs.

  • A federal judge ruled that the Trump administration cannot use a White House budget regulation to cancel federal grants solely because they no longer align with the president's policy priorities.
  • A U.S. court blocked the Trump administration from terminating billions of dollars in federal grants based on changes in administration priorities, siding with a coalition of states that challenged the policy.
  • A judge found that federal agencies cannot revoke existing grant funding under a broad interpretation of an Office of Management and Budget rule, preserving more than $5 billion in grants.
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Reuters broke the news in London, United Kingdom on Friday, July 17, 2026.
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