logo
Lawsuit challenges billions of dollars in Trump administration funding cuts

Lawsuit challenges billions of dollars in Trump administration funding cuts

Time of India4 hours ago

Attorneys general from more than 20 states and Washington, DC, filed a federal lawsuit Tuesday challenging billions of dollars in funding cuts made by the Trump administration that would fund everything from crime prevention to food security to scientific research.
The lawsuit filed in Boston is asking a judge to limit the Trump administration from relying on an obscure clause in the federal regulation to cut grants that don't align with its priorities.
Since January, the lawsuit argues that the administration has used that clause to cancel entire programmes and thousands of grants that had been previously awarded to states and grantees.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Play War Thunder now for free
War Thunder
Play Now
Undo
"Defendants' decision to invoke the Clause to terminate grants based on changed agency priorities is unlawful several times over," the plaintiffs argued.
"The rulemaking history of the Clause makes plain that the (Office of Management and Budget) intended for the Clause to permit terminations in only limited circumstances and provides no support for a broad power to terminate grants on a whim based on newly identified agency priorities."
Live Events
The lawsuit argues the Trump administration has used the clause for the basis of a "slash-and-burn campaign" to cut federal grants.
"Defendants have terminated thousands of grant awards made to Plaintiffs, pulling the rug out from under the States, and taking away critical federal funding on which States and their residents rely for essential programmes," the lawsuit added.
The White House's Office of Management and Budget did not immediately respond to a request made Tuesday afternoon for comment.
Rhode Island Attorney General Neronha said this lawsuit was just one of several the coalition of mostly Democratic states have filed over funding cuts. For the most part, they have largely succeeded in a string of legal victories to temporarily halt cuts.
This one, though, may be the broadest challenge to those funding cuts.
"It's no secret that this President has gone to great lengths to intercept federal funding to the states, but what may be lesser known is how the Trump Administration is attempting to justify their unlawful actions," Neronha said in a statement.
"Nearly every lawsuit this coalition of Democratic attorneys general has filed against the Administration is related to its unlawful and flagrant attempts to rob Americans of basic programmes and services upon which they rely. Most often, this comes in the form of illegal federal funding cuts, which the Administration attempts to justify via a so-called agency priorities clause."
Connecticut Attorney General William Tong said the lawsuit aimed to stop funding cuts he described as indiscriminate and illegal.
"There is no because I don't like you' or because I don't feel like it anymore' defunding clause in federal law that allows the President to bypass Congress on a whim," Tong said in a statement.
"Since his first minutes in office, Trump has unilaterally defunded our police, our schools, our healthcare, and more. He can't do that, and that's why over and over again we have blocked him in court and won back our funding."
In Massachusetts, Attorney General Andrea Campbell said the US Department of Agriculture terminated a USD 11 million agreement with the state Department of Agricultural Resources connecting hundreds of farmers to hundreds of food distribution sites while the US Environmental Protection Agency terminated a USD 1 million grant to the state Department of Public Health to reduce asthma triggers in low-income communities.
"We cannot stand idly by while this President continues to launch unprecedented, unlawful attacks on Massachusetts' residents, institutions, and economy," Campbell said in a statement.
The lawsuit argues that the OMB promulgated the use of the clause in question to justify the cuts. The clause in question, according to the lawsuit, refers to five words that say federal agents can terminate grants if the award "no longer effectuates the programme goals or agency priorities".
"The Trump Administration has claimed that five words in this Clause-'no longer effectuates . . . agency priorities'-provide federal agencies with virtually unfettered authority to withhold federal funding any time they no longer wish to support the programmes for which Congress has appropriated funding," the lawsuit said.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

India's economy holds steady despite global turbulence, says RBI
India's economy holds steady despite global turbulence, says RBI

Mint

time10 minutes ago

  • Mint

India's economy holds steady despite global turbulence, says RBI

New Delhi: Despite rising global risks from trade tensions and geopolitical conflicts, India's economy remains resilient, with key sectors maintaining momentum, the Reserve Bank of India (RBI) said in its latest State of the Economy report released Wednesday. The central bank, however, warned that prolonged trade policy uncertainty and increasing protectionism could leave a lasting impact on the global economy. 'High-frequency indicators for May 2025 point towards resilient economic activity in India across the industrial and services sectors,' the RBI said, highlighting the economy's relative stability amid external headwinds. The report, published as part of the RBI's monthly bulletin, flagged deepening geopolitical tensions as a key downside risk to already fragile global growth. The RBI warned that a further deterioration in the global environment could undermine trade flows and financial stability. "The intensifying geopolitical tensions too may further debilitate the already weakened growth impulses," it added. It said global trade policy, especially the expected expiry of a temporary US reciprocal tariff truce in July will be a key factor to watch. On 2 April, US President Donald Trump announced plans to enforce reciprocal tariffs on countries that impose higher duties on US goods, framing it as a measure to restore trade fairness. The announcement triggered global concern over a return to aggressive protectionism, unsettling markets and trade partners. For India, it signalled potential pressure to lower import tariffs or face retaliatory duties, and raised fears of stricter US scrutiny on its exports. However, on 9 April, Trump issued a 90-day pause on these tariffs. India and the US have been locked in intense negotiations to secure a trade deal before the pause ends. RBI added that geopolitical developments will also play a major role in shaping medium-term growth for India and the world. The central bank cited ongoing conflict between Israel and Iran, along with the resulting unrest in West Asia, as adding to the global uncertainty. "Since 13 June, however, uncertainty once again loomed large over the macroeconomic landscape in the wake of renewed geopolitical turbulence in the Middle East," it added. The RBI report said that the decision of the RBI's Monetary Policy Committee (MPC) to reduce the policy repo rate by 50 basis points to 5.5% earlier in June, will stimulate private consumption and investment. "A likely undershoot of inflation to below the target rate, at the margin, during the current financial year and evidence of further anchoring of inflation expectations provided the MPC with the policy space to decisively focus on growth by frontloading the rate cut," it added. To be sure, changes in the central bank's policy rate influence inflation by altering borrowing costs. Lower rates spur consumption and investment, potentially pushing prices up, while higher rates dampen demand and ease inflationary pressures. By managing interest rates, the central bank calibrates economic activity to keep inflation aligned with its target. Interestingly, retail inflation cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released on 12 June. Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years. The RBI aims to maintain CPI inflation at a target of 4%, within a flexible tolerance band of ±2%, while simultaneously fostering economic growth. The RBI said that overall economic activity remained robust in May 2025, with key high-frequency indicators like e-way bills, goods and services tax (GST) revenue, toll collections, and digital payments showing strong growth. On agriculture, it said that high-frequency indicators for the ongoing kharif agricultural season point to largely favourable conditions for good sowing, though uncertainties remain on the distribution of monsoon. "High-frequency food price data for June so far (up to 20 June 2025) shows a moderation in prices of pulses while prices of cereals have risen marginally," it said. Meanwhile, gross inward foreign direct investment (FDI) amounted to $8.8 billion in April 2025, higher than $5.9 billion in March 2025 and $7.2 billion in April 2024, the RBI said, adding that manufacturing and business services accounted for nearly half of the gross FDI inflows in May.

As Iran Israel ceasefire holds, Tehran-backed hackers begin operations - target US banks, and defense sites
As Iran Israel ceasefire holds, Tehran-backed hackers begin operations - target US banks, and defense sites

Time of India

time13 minutes ago

  • Time of India

As Iran Israel ceasefire holds, Tehran-backed hackers begin operations - target US banks, and defense sites

Iran-backed hackers have started targeting U.S. banks, oil companies, and defense firms after American strikes on Iran. U.S. authorities have warned critical infrastructure operators to stay alert for possible cyber threats. Experts say cyberattacks can spread fear and confusion, even without causing major damage. Officials are closely watching for more attacks. Tired of too many ads? Remove Ads Hacker groups and their actions Tired of too many ads? Remove Ads Iran's cyber style Cuts in U.S. cybersecurity FAQs Even though Iran and Israel agreed to a ceasefire, hackers who support Iran have started attacking U.S. websites. They've gone after big targets like banks, defense companies, and oil industries. Experts are worried things might get worse if the ceasefire breaks or if more hackers join U.S. military strikes on Iranian nuclear facilities, Iranian-backed hackers began targeting American companies. The hackers are mainly attacking U.S. banks, defense contractors, and oil companies. So far, the attacks haven't caused any major damage to important U.S. systems or the economy, according to the report by AP warn things could get worse if the Iran-Israel ceasefire breaks, or if independent hacker groups join in. Arnie Bellini, a tech investor, said Iran, Russia, China, and North Korea may invest more in cyberwarfare now, since hacking is cheaper than using weapons. Bellini also said America is strong in regular warfare but very weak when it comes to digital attacks, "like Swiss cheese."Two pro-Palestinian hacker groups claimed they hit over a dozen U.S. aviation firms, banks, and oil companies. These were denial-of-service attacks, which try to shut down websites or systems by overloading them. One of the groups, Mysterious Team, posted online that they are increasing attacks, as stated in the report by AP Department of Homeland Security issued a warning about increased Iranian cyber threats. The Cybersecurity and Infrastructure Security Agency asked organizations like water plants, pipelines, and power grids to be extra is not as advanced in hacking as China or Russia, but it's known as a 'chaos agent', it uses cyberattacks to steal info, scare enemies, and make political noise. If the ceasefire continues, Iran's official hackers may stop. But independent hacker groups that support Iran could still attack. Some of these hacker groups are linked to Iran's military or intelligence. Others work alone. Over 60 such groups have been tracked, as per the report by AP hacker groups want to create fear, confusion, and economic problems. After the Hamas attack on Israel in Oct 2023, some hackers broke into an Israeli emergency alert app and sent fake nuclear missile may try more spying rather than destruction, like watching what Trump or U.S. leaders do next. Last year, three Iranian hackers were charged for trying to hack Trump's 2020 campaign. Jake Williams said Iran is still likely using its hacking tools to gather intelligence, not just attack, as sated by AP News Trump administration has reduced funding and staff for cybersecurity programs. CISA cut staff who worked on election security and reduced funding for local/state cybersecurity. Gen. Timothy Haugh, head of NSA and Cyber Command, was suddenly fired by strike on Iran's nuclear scientists showed how powerful cyber-espionage can be. Arnie Bellini donated $40 million to help build a new cybersecurity center at the University of South Florida. Bellini said the cyberwar is like a never-ending cartoon chase, 'Wile E. Coyote vs. Road Runner', and the U.S. can't afford to lose, according to the AP News that support Iran, including pro-Palestinian hackers.U.S. banks, defense companies, oil firms, and aviation.

Why Germany's former chancellor has triggered fresh outrage
Why Germany's former chancellor has triggered fresh outrage

Time of India

time17 minutes ago

  • Time of India

Why Germany's former chancellor has triggered fresh outrage

AP Image Parties of the far-left and far-right in Germany are criticizing the decision to afford former Chancellor Olaf Scholz his own office with a staff of eight — on top of his regular office as a member of the Bundestag. Stephan Brandner, parliamentary whip for the far-right Alternative for Germany (AfD), said he could understand former chancellors receiving a staff of three as well as a driver. "But what eight employees are supposed to do for an ex-chancellor who has not completed a full term of office remains completely unclear, and is nothing more than a waste of tax money," he told Die Welt newspaper. Christian Görke of the socialist Left Party took a similar line, arguing that the entire idea of giving former chancellors offices to work from should be scrapped, "They don't need their own court for life," he said. "The offices must be dissolved." Staff for an ex-chancellor Former German chancellors and presidents are traditionally given their own offices for life after their terms end, on the grounds that they can never simply retire and become private citizens again and are considered to still have responsibilities to the state. In Scholz's case, the Finance Ministry has said the former chancellor's work is likely to be especially vital because Russia's all-out war in Ukraine began during his tenure. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Buy Brass Idols - Handmade Brass Statues for Home & Gifting Luxeartisanship Buy Now Undo Government spokesperson Stefan Kornelius told reporters that the Social Democrat's expertise would still be required, as the war in Ukraine was "still a really central foreign policy and security policy issue." He added that Scholz's successor and opponent in the last federal election, Friedrich Merz of the conservative Christian Democratic Union (CDU), considered Scholz's planned staffing appropriate. Wulff and Schröder cases Scholz's eight employees is one fewer than his predecessor Angela Merkel was afforded when she left office in 2021, but it is four more than the parliamentary budget committee recommended in a 2019 review. The committee proposed that former chancellors be allotted one office manager, two advisers, an office assistant or typist and a driver. The tradition of giving former German leaders offices and staff has come under increased scrutiny following various controversies. In 2012, the Bundestag afforded the former President Christian Wulff an office with a staff of three, even though he was still under investigation by state prosecutors for allegedly accepting bribes. The scandal, among other things involving a film producer who allegedly paid for his holidays, prematurely ended Wulff's brief tenure as the German head of state, though he was later cleared of any wrongdoing. More recently, in 2022, the Bundestag wound down the office of former Chancellor Gerhard Schröder, with a staff of five, after Russia's all-out invasion of Ukraine. Though the Bundestag argued that the decision was made because Schröder no longer had any important tasks to fulfil, it was widely believed — and Schröder argued — that the decision was made because of the former chancellor's close ties to Russian President Vladimir Putin. Schröder sued the Bundestag over the decision in state courts before a federal court decided that the administrative courts had no authority to rule on the case in the first place. Schröder, now 81, then decided to drop the case altogether. New rules, new authority But the Schröder case did have an effect, according to Klaus Herrmann, a specialist in administrative law at the legal firm Dombert in Potsdam. During the legal wrangling, the courts established that former chancellors and presidents (or indeed any government office holders) don't automatically have a legal claim to an office and staff on the state's costs. All they are entitled to is a pension. Nevertheless, Herrmann thinks the costs of financing an office for former chancellors are justified, as former heads of state and government are vital resources for their successors, as well as journalists and historians. "They have networks, they have telephone numbers," he told DW. "They can be asked for advice, and if they have an office, they are reachable. They don't sit around at home and look after their roses. They can be called upon to help with state business, in order to support the parliamentary government — with ideas, with contacts, and so on."

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store