The Trump administration cannot cancel grants that have already been awarded to states simply because “program goals and agency priorities” have changed, a federal judge ruled Friday in a case affecting billions of dollars in grant funding. The 2024 version of the clause says an award can be terminated if it “no longer effectuates the program goals or agency priorities.” The judge said her interpretation does not limit “the President or agencies from setting program goals and agency priorities before awarding new grants. The regulation, as declared by this court, demands only that grantees be apprised of those goals and priorities before grants are awarded." Talwani’s decision follows a similar federal court ruling last week reversing terminations of grants for congressionally authorized USDA programs.