A federal judge ruled that federal officials cannot cancel existing grants solely because new government priorities no longer align, limiting the Trump administration’s power to terminate awards under the spending clause and regulations. The decision was described as a victory for a coalition of 21 attorneys general and three governors challenging grant termination practices. The ruling focused on the legality of ending grants on priority-change grounds, rather than whether the earlier terminations were proper. Colleges reported uncertainty tied to grant stoppages and reductions in their federal research portfolios, with at least one institution citing significant declines linked to terminations. For universities and research enterprises, the ruling signals greater stability for current award portfolios and reduces one major avenue of fiscal disruption—though it does not eliminate the broader need for compliance planning as policy priorities shift.