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  "description": "Lawsuit challenges rule used to cancel Digital Equity Act and other federally funded programs.",
  "path": "/22-states-sue-trump-administration-over-unlawful-federal-grant-cancellations/",
  "publishedAt": "2025-06-30T20:54:49.000Z",
  "site": "https://broadbandbreakfast.com",
  "tags": [
    "_that states_",
    "_The states’ suit_ asserts",
    "All Videos from Speeding BEAD Summit",
    "_relied on the same regulation_",
    "_some lawmakers_",
    "_sudden termination_",
    "_sought to close the digital divide_",
    "_was sponsored_",
    "_Supporters_",
    "_including_",
    "_pushed back_",
    "_and argued_",
    "_close the digital divide_"
  ],
  "textContent": "WASHINGTON, June 30, 2025 – A coalition of 21 states and the District of Columbia filed suit last week against the Trump Administration, challenging a federal rule that has been repeatedly used to abruptly terminate billions of dollars in federal grants.\n\nFiled Tuesday, June 24 in the U.S. District Court for Massachusetts, the lawsuit targets a provision in federal grant regulations promoted by the Office of Management and Budget, _that states_ that a Federal award may be terminated by an agency “if an award no longer effectuates the program goals or agency priorities.”\n\n _The states’ suit_ asserts that the Trump Administration has been interpreting this Clause to provide federal agencies with “virtually unfettered authority to withhold federal funding any time they no longer wish to support the programs for which Congress has appropriated funding.”\n\n\n\n_****FROM SPEEDING BEAD SUMMIT****_\n _****Panel 1: How Are States Thinking About Reasonable Costs Now?****_\n_****Panel 2: Finding the State Versus Federal Balance in BEAD****_\n _****Panel 3: Reacting to the New BEAD NOFO Guidance****_\n _****Panel 4: Building, Maintaining and Adopting Digital Workforce Skills****_\n\n All Videos from Speeding BEAD Summit \n\nAccording to the litigants, this interpretation of the clause “is a dramatic departure from past practice and OMB’s own interpretation of the Clause.”\n\nThe states’ suit, filed last Tuesday, described recent Trump administration cuts as \"unprecedented and unlawful” and asked the District Court of Massachusetts to rule that Federal agencies do not have the authority to eliminate grant funding “based on a failure to effective agency priorities identified after the grant was awarded.”\n\nThe suit listed a litany of Federal agencies and agency heads as defendants, including the Departments of Commerce, Agriculture, and Defense, as well as Commerce Secretary **Howard Lutnick** and OMB Director **Russell Vought**.\n\nThe outcome of the lawsuit could have important implications for broadband access, as the Trump administration’s rationale for cutting $2.75 billion from Digital Equity Act programs _relied on the same regulation_ at issue in the suit. Additionally, _some lawmakers_ have called the _sudden termination_ of the DEA illegal, under grounds similar to those mentioned in the lawsuit.\n\nIf the suit were to be decided in favor of the plaintiffs, the DEA would not necessarily be restored. The plaintiffs have only asked the court to rule on the legality of the Trump administration’s rationale for cutting funding, but have not asked the court to restore that funding.\n\nThe DEA, passed in 2021 as part of the Infrastructure Investment and Jobs Act, _sought to close the digital divide_ by, among other things, funding classes teaching digital literacy skills and distributing laptops to those who could not afford them. The $2.75 billion program “passed with overwhelming bipartisan support,” according to Sen. **Patty Murray** , D-Wash. It _was sponsored_ by Murray, and cosponsored by Sens. **Rob Portman** , R-Ohio, and **Angus King** , I-Maine.\n\nThe Trump administration ended the DEA program in May, calling it “racist” and “unconstitutional.” _Supporters_ of the program, _including_ Sen. **Susan Collins** , R-Maine, have _pushed back_ against those assertions, _and argued_ that the program is necessary to _close the digital divide_.\n\nThe lawsuit also cites other major broadband programs that could be vulnerable under the same legal theory. For example, Wisconsin highlights its ongoing $1 billion award from the Broadband, Equity, Access, and Deployment program, warning that the Commerce Department’s interpretation of the grant termination rule could put even Congressionally approved broadband funding at risk.\n\nOf the 22 states that brought the suit, 20 of them are represented by their attorney generals, all Democrats. Pennsylvania, which has a Republican attorney general, is represented in the case by its Governor **Josh Shapiro** , a Democrat.",
  "title": "22 States Sue Trump Administration Over ‘Unlawful’ Federal Grant Cancellations",
  "updatedAt": "2026-03-11T03:27:01.776Z"
}