Judge rules OMB can't retroactively nix grants based on new rules

A federal judge declared Friday that the Trump administration can't cancel grants based on new rules or goals established after the fact — in a blow to its efforts to terminate billions of dollars already promised.

U.S. District Judge Indira Talwani, an Obama appointee, denied the Trump administration's request to dismiss a lawsuit brought by 20 states, three governors and the District of Columbia challenging the cancellation of billions of dollars in federal grant awards since President Donald Trump was inaugurated last year.