Judge Orders Trump Admin to Restore Millions in Research Funding

In a significant legal decision, a federal judge in California has ordered the Trump administration to restore over $324 million in research funding to scientists within the University of California (UC) system. The ruling comes in response to what the court called a “blatant violation” of legal norms in terminating federal grants.

U.S. District Judge Rita F. Lin issued the ruling on Monday, stating that the administration’s mass termination of grants, many focused on diversity, equity, and inclusion (DEI), was “likely illegal” and potentially unconstitutional. Lin, a Biden appointee, granted a preliminary injunction and certified two groups of affected researchers as part of a class action lawsuit.

Background: Political Directives and Sudden Cuts

The controversy began after former President Donald Trump signed executive orders in early 2024 aimed at eliminating DEI-related initiatives across federal agencies. Following those orders, several agencies, including the U.S. Department of Government Efficiency (DOGE), began abruptly terminating existing research grants.

Many of the cancellation notices were sent out as standard form letters, stating only that the projects “no longer meet agency priorities.” In some cases, agencies reportedly used keyword searches to flag research for termination, targeting projects related to DEI, including studies on diversity and equity.

Among those affected was Dr. Neeta Thakur, a UCSF researcher whose project aimed at reducing the health effects of wildfire smoke on low-income communities. Her grant, like many others, was ended without explanation.

Court Rebukes Administration's Actions

Judge Lin’s 62-page order criticized both the process and intent behind the terminations. She noted that administrative agencies must provide clear explanations, backed by reasons, when changing long-standing practices. The blanket cancellation letters, she said, failed that test.

“The law requires administrative agencies to provide reasoned explanations for their decisions, particularly when changing a longstanding practice and abruptly upending years of planning and work,” Lin wrote. “The form termination letters here appear to be in blatant violation of that requirement.”

The judge found that researchers faced “irreparable harm,” including job losses, stalled research, damaged reputations, and suppressed speech. She also noted that many of the grants were targeted solely because they addressed topics like DEI, which Congress had specifically encouraged through funding.

First Amendment and Legal Standing

In her ruling, Lin emphasized that suppressing specific ideas by defunding related research violated the First Amendment. “The Executive may not suppress ideas it deems dangerous by trying to drive them out of the marketplace of ideas,” the court stated.

The government attempted to dismiss the lawsuit by arguing the researchers lacked legal standing and were simply involved in contract disputes. Judge Lin rejected these claims, asserting that the plaintiffs had experienced direct harm and had the right to seek injunctive relief.

Also Read: The ESG Crossfire: Shareholder Proposals Stir Controversy This May

Next Steps: Funding Restored, Further Cuts Blocked

The court’s injunction reinstates the previously terminated grants while preventing the administration from cutting any more UC research funding under the same grounds.

The judge categorized the plaintiffs into two classes:

Equity termination class: Researchers whose grants were cut for DEI-related reasons.
Form termination class: Those who received vague, non-specific termination letters.

This decision could have broader implications for how future administrations approach federal research funding and underscores the judiciary's role in safeguarding academic freedom.

Follow more news and views via our Regulators and Featured Articles sections, and stay updated on top ESG events to attend in 2025 for industry insights and networking.

Source: Law & Crime