AG Clark’s Win Rate for Lawsuits and Preliminary Rulings Around 90%

MONTPELIER, Vt. – A federal judge ruled on Friday in the favor of a coalition of 24 states, including Vermont, declaring the Trump Administration illegally misused its regulatory authority to unlawfully revoke billions of dollars in federal funding that Congress had set aside for crucial state programs and services. Attorney General Charity Clark and a coalition of attorneys general filed the lawsuit in June of 2025, challenging the unprecedented attack on billions of dollars in critical federal funding for states and other grantees using a clause buried in federal regulations.

In the decision, the court found that the U.S. Office of Management and Budget (OMB) regulations did not give federal agencies unfettered authority to terminate funding based on agency priorities that were only identified after the grant was awarded. 

“Federal funding is essential to helping state agencies deliver critical services on which Vermonters rely. The sudden and unlawful revocation of these awarded funds was both destabilizing and disruptive,” said Attorney General Clark. “This ruling is an important step toward protecting Vermont’s federal funding, now and in the future, from arbitrary termination based on the shifting priorities of the Trump Administration.” 

The coalition’s lawsuit argued that the Trump Administration’s decision to invoke the regulation to terminate grants based on their changed agency priorities was unlawful. The lawsuit explained that the regulation does not authorize federal agencies to terminate grants based on changes in agency preferences that occur after a grant is awarded. The lawsuit also noted the importance of obtaining clarity regarding the scope of this regulation, as states collectively accept hundreds of billions of dollars a year that are at risk of termination pursuant to this regulation. 

Friday’s ruling continues Attorney General Clark’s strong litigation record in cases filed against the Trump Administration, with courts issuing favorable decisions—including preliminary rulings—in approximately 90% of cases decided to date. 

For more information on actions taken by the Attorney General on behalf of Vermonters, visit our website.   

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Attorney General’s Office | 109 State Street | Montpelier, VT 05609-0101 | ago.vermont.gov