A federal judge in Boston ruled the Trump administration cannot use an obscure grant “termination clause” to slash billions in funding, granting summary judgment to 23 states that sued over the policy’s scope. U.S. District Judge Indira Talwani held the administration’s interpretation was not supported by the clause text and conflicted with the Spending Clause’s requirement that conditions be unambiguous. The ruling bars the administration from relying on the clause—first introduced in 2020 and revised in 2024—to cancel current and future grants, which the states said could affect programs ranging from public safety and disaster preparedness to scientific research and clean water. The decision preserves funding continuity for projects waiting on grant continuations. In the case, the administration argued it could end awards if they no longer effectuated program goals or “agency priorities.” Talwani rejected that reading, finding it runs counter to the rulemaking history and the broader regulatory scheme. For higher education research offices, the decision is a near-term check on federal leverage over grant terms and could reduce uncertainty in internal planning for federally funded studies and labs.