Wisconsin among coalition of states to win lawsuit against Trump administration cutting federal grants

July 22, 2026

By Henry Redman, Wisconsin Examiner

A federal judge ruled late last week that the Trump administration had acted illegally last summer when it cut millions in federal grant money. 

U.S. District Judge Indira Talwani in the District of Massachusetts ruled on Friday that the White House’s Office of Management and Budget does not have the authority to revoke grants on a whim. OMB had argued that a line in the federal regulations gave the White House authority to cancel grants to account for shifts in priorities. 

Talwani found that the agency couldn’t cancel grants to achieve priorities that were announced after the grants had been awarded. 

Wisconsin was joined by 22 other states and Washington D.C. in filing a lawsuit against OMB pulling back grant funds. The Wisconsin Department of Justice noted in a press release that the state had lost tens of millions of dollars in federal grant funding meant to help provide Wisconsin-grown food to local food banks, modernize the state’s unemployment system and fund research at UW-Madison. 

“The Trump administration has been recklessly attempting to slash funding that supports important programs,” said Attorney General Josh Kaul. “This decision shuts down an unlawful avenue that the Trump administration was using to try to impose those cuts.”

~~~

Wisconsin Examiner is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Wisconsin Examiner maintains editorial independence. Contact Editor Ruth Conniff for questions: info@wisconsinexaminer.com.