USDA Told to Reinstate Ended Grants to Farmers, Nonprofits

Several farmers and nonprofits will have their grants reinstated by the US Department of Agriculture (USDA), following a ruling by a federal court on Thursday. The USDA and the Department of Government Efficiency were found to be in violation of Congress’s mandates due to mass terminations without proper review.

The US District Court for the District of Columbia ruled to restore six grants that had been awarded under the Biden administration. The court found that the agencies’ termination letters lacked clear reasoning and neglected to consider the reliance interests, thereby violating the Administrative Procedure Act.

The Urban Sustainability Directors Network, Institute for Agriculture and Trade Policy, and Agroecology Commons are among the groups whose grants will be reinstated. However, Judge Beryl A. Howell clarified that plaintiffs had not proved sufficient grounds to restore the hundreds of awards in question.

This court order is the latest in a series of fund restorations, following DOGE-led attempts to reduce costs. Earlier, in May, cities like Nashville and Baltimore had won a preliminary injunction to access millions in funds set aside by Biden’s infrastructure laws.

The government argued for the case to be taken up by the US Court of Federal Claims. However, Howell ruled that the case was more centered on the notice requirements of the APA and the Constitution’s separation of powers structure, as it was Congress that directed the climate change initiatives funded by these grants. These claims, hence, were not contractual and did not fall under the jurisdiction of the Federal Claims court.

The grants in question include programs under the Inflation Reduction Act and the Cooperative Forestry Act. The USDA’s termination of the grants, which Secretary Brooke Rollins referred to as “woke DEI propaganda”, could not be justified considering the intent of the lawmakers.

According to Howell, the USDA and DOGE canceled the grant on the grounds of it supporting groups “that have historically faced discrimination”. However, Congress had provided specific instructions for such ‘underserved’ groups to be supported by the funding.

Legal representation for the plaintiffs in the case is being provided by Earthjustice, Farmers Justice Center, and FarmSTAND.

The case, titled Urb. Sustainability Dirs. Network v. US Dep’t of Agric., carries the court reference D.D.C., No. 1:25-cv-01775, preliminary injunction 8/14/25.