A US judge raises doubts over the legal basis for the administration’s decision to reduce federal funding by billions.
A federal judge has questioned the Trump administration’s justification for cutting USD 5.7 billion in federal grants, signaling potential legal hurdles. The ruling follows a lawsuit challenging the reductions, which target programs including housing and community development.
The administration previously argued the cuts were necessary to reallocate funds, but critics claim the move lacks proper legislative authority. Similar disputes over executive spending powers have arisen in past budget battles, though courts have rarely intervened on such matters.
Markets have shown limited reaction, as the case remains in early stages with no immediate fiscal impact expected.