A federal judge in Boston ruled the Trump administration cannot use a grant “termination clause” tied to agency priorities to cut billions in funding. U.S. District Judge Indira Talwani granted summary judgment for the states challenging the policy and denied the government’s motion to dismiss. The dispute centered on an “obscure clause” that allows termination if a grant no longer effectuates program goals or agency priorities. The plaintiffs—23 states—argued the administration used the language as a sweeping tool to cancel current and future grants, including areas such as scientific research and public safety. Talwani’s order said the administration’s interpretation was not supported by the provision’s text, conflicted with the regulatory scheme, and would violate the Spending Clause requirement that conditions be imposed unambiguously. For higher education institutions dependent on federal pass-through and research support, the ruling provides near-term protection against abrupt program-level award disruptions while litigation continues to shape the broader federal-grants environment.