Twenty-One State Attorneys General Sue USDA Over New Grant Conditions
April 4, 2026 · 2 min read
Jared Klein
A coalition of 21 state attorneys general filed suit on March 23 in the U.S. District Court for the District of Massachusetts, challenging new standardized terms and conditions that USDA began applying to all grants, cooperative agreements, and similar awards across its 21 awarding agencies.
The case, Massachusetts et al. v. United States Department of Agriculture (No. 1:26-cv-11396), strikes at the heart of how federal grant conditions can be used to advance policy priorities — and could have ripple effects across the entire federal grant landscape.
What the New Conditions Require
The challenged provisions stem from a December 31, 2025 memorandum issued by Secretary of Agriculture Brooke Rollins. USDA agencies began incorporating the new General Terms and Conditions into award documents on February 14, 2026. The conditions require grant recipients to certify compliance with all applicable federal anti-discrimination policies, prohibit using funds to "promote gender ideology," restrict funding for programs that allow undocumented immigrants to receive benefits, and mandate compliance with several presidential executive orders.
The breadth is notable: these conditions apply across every USDA funding stream, from nutrition assistance and school meals to agricultural research and rural development grants.
The Legal Arguments at Stake
The plaintiff states — led by Massachusetts, California, Illinois, and Wisconsin, and including 17 additional jurisdictions plus the District of Columbia — allege the conditions violate the Spending Clause of the U.S. Constitution on grounds of vagueness and coercion. They also claim violations of the Administrative Procedure Act, arguing the conditions are arbitrary, exceed statutory authority, and were imposed without proper notice-and-comment rulemaking.
New York Attorney General Letitia James called the conditions an attempt to "hold hostage billions in critical USDA funding." Several plaintiff states reported already receiving award documents incorporating the new terms.
What Grant Recipients Should Watch For
The lawsuit has not yet produced a preliminary injunction, meaning the conditions remain in effect. Current and prospective USDA grant recipients should review any new award documents carefully for the updated terms. Organizations with existing awards that undergo significant modifications after March 18, 2026 may also see the new conditions applied, per NIFA's implementation timeline. A USDA webinar on the updated terms is scheduled for April 15, 2026.
For ongoing coverage of federal grant policy developments and compliance guidance, visit the Granted blog.