Shapiro, 20 States Sue Trump Administration Over Billions in Canceled Federal Grants

Pennsylvania Governor Josh Shapiro, along with 19 other states and Washington, D.C., has filed a lawsuit challenging the Trump administration's broad cuts to billions of dollars in federally awarded grants. The lawsuit centers on the administration's interpretation of a five-word clause in federal regulations allowing grant terminations if the award no longer aligns with agency priorities, which the plaintiffs argue has been unlawfully expanded to justify abrupt and arbitrary funding cancellations. The complaint describes this as a "nationwide slash-and-burn campaign" that has disrupted funding critical to various programs, including natural disaster preparedness and veterans' internet access. The states contend that the Office of Management and Budget intended the clause to permit grant termination only under limited circumstances when funding fails to achieve program goals, not simply due to changed agency priorities. Shapiro emphasized that Pennsylvania taxpayers deserve the promised federal services and noted the state has consistently won previous legal challenges against such funding cuts. This lawsuit represents one of the most comprehensive efforts to counteract the Trump administration's funding reductions, which have already been temporarily halted in other cases.