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June 5, 2025

USDA Grantees Sue Trump Administration to Stop Illegal Grant Terminations

Farmers & Rural Communities

Wide range of nonprofits take action against U.S. Department of Agriculture for illegal withholding of important funding, seek order to reverse grant terminations

A group of organizations that use U.S. Department of Agriculture grants to create a healthier nation and a fair food system filed a lawsuit today against USDA to restore grant funding.

Agroecology Commons, Oakville Bluegrass Cooperative, and the Urban Sustainability Directors Network allege that USDA did not abide by legal processes required for terminating these grants, violating their due process rights and the Administrative Procedures Act, and in the case of the Urban Sustainability Directors Network, violating the separation of powers laid out in the Constitution, and violating recent legislation. The plaintiff groups are represented by FarmSTAND, Earthjustice, and Farmers Justice Center in this action.

Agroecology Commons was using its grant to help beginning farmers and low-income communities in the San Francisco Bay Area; Oakville Bluegrass Cooperative had received federal grant funding to further its mission of discovering and sharing best practices in sustainable agriculture tailored to the needs of specialty crop growers; USDN’s grant was for strengthening the field of urban forestry and expanding best management practices to protect vulnerable communities from extreme heat.

Today’s suit alleges that following several Trump executive orders targeting climate action and efforts to support diversity, equity, inclusion, and accessibility, “Defendants began engaging in a policy, pattern, and practice of unlawfully terminating federal grant awards.”

The letter each of the plaintiffs received from USDA is a barely-edited form canceling its grant on the basis that it “no longer serves agency priorities.” Some termination letters included a highlighted fill-in for the name of the subagency that issued its grant and had a .pdf name that included the phrase “Full Termination Letter Template.”

Farmers and nonprofits across the U.S. have faced serious economic hardship due to the Trump Administration freezing funding for programs that provide essential support to rural communities. This suit addresses the similarly alarming trend of USDA’s cancelation of grant funding.

The Department of Government Efficiency website lists a total of 600 USDA grant funding “terminations,” a phrasing suggesting they see money allocated by Congress as “savings” and have no intention to spend it unless forced to by the courts.

“Restoring this grant funding is really vital for the 39 municipalities and community-based organizations USDN has been supporting across 18 states through this project,” said USDN Chief Executive Officer Deneine Christa Powell. “This collaboration between the USFS and USDN was making great progress toward helping these disadvantaged communities rebuild their overall tree canopy by maintaining and planting thousands of trees, building nurseries, and also creating and maintaining hundreds of jobs; including youth workforce development. We are hopeful to have this funding restored soon because strengthening urban forestry practices are key to helping protect vulnerable communities from extreme heat.”

“The Trump Administration has stopped funding to groups doing important work consistent with the purposes of their grants to support underserved communities and independent producers of food, and to bring about a healthier country and environment for all,” said Holly Bainbridge, FarmSTAND Staff Attorney and counsel for the plaintiff groups. “USDA’s policy and practice of terminating these grants represents, in part, a desperate attempt to roll back progress toward a thriving America and a fair food system.”

The suit alleges that in addition to being unlawful, these cancelations directly conflict with the Trump Administration’s new stated priorities for USDA, including “maximizing and promoting American agriculture,” “ensuring a safe, nutritious, and secure food supply,” and “enhancing rural prosperity.”

“The Trump administration’s pattern of unlawfully terminating grants that benefit farmers is both cruel and illegal. The law does not allow the government to change the rules retroactively. The plaintiffs in good faith relied on these grants to support programs focused on food security in low-income communities, beginning and underserved farmers, and sustainable practices. They invested, planned, and acted in reliance on this support,” said Carrie Apfel, Deputy Managing Attorney, Sustainable Food and Farming program at Earthjustice. “The administration’s alleged new policies do not justify pulling the rug out from these organizations and the farmers and communities they serve.”

“The Trump administration’s unlawful actions are hurting farmers, both rural and urban, from coast to coast,” said Scott Carlson, Executive Director and Attorney at Farmers Justice Center. “Farm families and their communities are suffering because of these cuts, and farmers’ ability to stay on the land is under threat.”

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