Trump Scores Major Legal Victory as Judge Allows Cancellation and Clawbacks of $800 Million in Wasteful Grants

In a significant triumph for the Trump Administration, U.S. District Judge Amit Mehta has rejected a preliminary injunction that would have countered the Justice Department’s initiative to block hundreds of millions of dollars in federal grants, although Judge Mehta characterized the DOJ as “shameful” in his decision.

To provide context, in May 2025, five organizations filed a lawsuit against the Department of Justice after their federal grants were terminated by the DOJ, contending that the cancellations violated the Constitution. In response, District Judge Amit Mehta criticized the DOJ for its actions in terminating the grants, yet he concluded on July 8, 2025, that the court lacked the jurisdiction to proceed with the lawsuit.

In his ruling, Judge Mehta remarked that the Justice Department’s cancellation of the grants was “shameful,” further stating, “It is likely to harm communities and individuals vulnerable to crime and violence.” However, the judge emphasized, “But displeasure and sympathy are not sufficient in a court of law.”

Furthermore, in their lawsuit against the Justice Department, the five organizations, which included the Vera Institute of Justice, Chinese for Affirmative Action, Force Detroit, among others, claimed that the DOJ’s Office of Justice Programs “abruptly and summarily terminated more than 370 multi-year cooperative agreements and grants awarding over $820 million in essential funding.”

Additionally, the organizations accused the DOJ of rescinding grants that target “violence reduction and intervention, policing and prosecution, victims’ services, juvenile justice and child protection, substance use and mental health treatment,” along with various other social issues. The plaintiffs argued that their organizations have faced “an abrupt discontinuation of vital services to some of the most vulnerable in our communities, rendering individuals and the communities they inhabit less safe.”

Following the initiation of the lawsuit, the DOJ allegedly requested Judge Mehta to dismiss it, submitting a statement that contended there was “no legal basis for the Court to mandate the DOJ to reinstate lawfully terminated grants and continue funding programs that the Executive Branch considers inconsistent with the interests of the United States.”

Additionally, New Jersey Attorney General Matt Platkin vehemently condemned the DOJ for its choice to revoke the grants during a press conference, asserting, “To claim, ‘We’re going to eliminate programs that safeguard individuals from bias, that assist those struggling with opioid addiction, that prevent firearms from being on our streets’ — it’s irresponsible, it’s reckless, it’s dangerous, and it’s going to result in fatalities.”

Furthermore, Nancy Smith from Activating Change, an organization impacted by the withdrawal of the grants that collaborates with individuals with disabilities, described the decision as “a catastrophic blow,” further stating that the loss of funding has also dismantled “the safety net for individuals with disabilities and deaf individuals who have faced violent crime in our nation.”

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