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AG Clark Sues Trump Administration Over USDA Funding Conditions

Favicon for ago.vermont.gov AG: Vermont Press Releases
Filed March 23rd, 2026
Detected March 24th, 2026
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Summary

Vermont Attorney General Charity Clark joined 20 other state AGs in suing the Trump Administration over new, unlawful conditions imposed on USDA funding. The lawsuit challenges conditions related to immigration, diversity, equity, and inclusion that threaten over $200 million in federal funding for Vermont and nationwide programs like SNAP and WIC.

What changed

Vermont Attorney General Charity Clark, as part of a coalition of 21 state Attorneys General, has filed a lawsuit against the Trump Administration challenging new conditions imposed by the USDA on federal grants and agreements. The lawsuit alleges that these conditions, which relate to immigration, diversity, equity, inclusion, and gender identity, are unconstitutional, unlawful, and unrelated to the purpose of USDA funding. The coalition seeks to block the USDA from enforcing these conditions, which could jeopardize critical programs such as SNAP, WIC, and the school lunch program, potentially impacting billions of dollars in federal funding nationwide and over $200 million for Vermont.

Regulated entities, particularly state agencies and organizations that receive USDA funding, should be aware of this legal challenge. While the lawsuit seeks to block the enforcement of these new conditions, entities should monitor the litigation's progress. The USDA adopted these new funding conditions effective December 31, 2025. Non-compliance with the Administration's policies could lead to the withholding of essential federal funds, impacting the provision of basic services to vulnerable populations. The lawsuit specifically cites violations of the Spending Clause of the U.S. Constitution and the Administrative Procedure Act.

What to do next

  1. Monitor litigation progress regarding USDA funding conditions.
  2. Review current USDA grant agreements for any newly imposed conditions related to immigration, DEI, or gender identity.

Penalties

Threatened harsh penalties, including withholding of federal funding, for non-compliance with new USDA funding conditions.

Source document (simplified)

Attorney General Clark Sues Trump Administration for Holding Hostage Billions in Critical USDA Funding Nationwide

Category Press Releases March 23, 2026 Unlawful Grant Terms Threaten Over $200 Million in Federal Funding for Vermont

Attorney General Charity Clark today joined a coalition of 21 attorneys general in suing the Trump Administration over its unconstitutional and unlawful attempt to impose conditions on U.S. Department of Agriculture (USDA) programs, grants, cooperative agreements and mutual interest agreements. In their lawsuit, the coalition alleges the Trump Administration has violated the Spending Clause of the U.S. Constitution and the Administrative Procedure Act (APA). This is the 46 th lawsuit filed by Attorney General Clark against the Trump Administration.

Attorney General Clark and the coalition assert in their lawsuit that USDA has threatened harsh penalties if states do not comply with the agency’s vague and expansive funding conditions relating to immigration, diversity, equity and inclusion, and gender identity, which are unrelated to the purpose of USDA funding. The lawsuit asks the court to block USDA from imposing these illegal funding conditions, including on critical USDA programs such as the school lunch program; Special Supplemental Nutrition Program for Women, Infants and Children (WIC); the Supplemental Nutrition Assistance Program (SNAP); The Emergency Food Assistance Program (TEFAP); and the Volunteer Fire Capacity Program. The programs provide basic, essential services for tens of thousands of Vermont’s most vulnerable children, working families, seniors, and people with disabilities.

“Imposing these funding conditions on programs that feed the most vulnerable Americans is illegal and cruel,” said Attorney General Clark. “It also, unfortunately, keeps with a theme of this Administration of violating the Constitution and federal law – regardless of the cost to Americans – to further the President’s extreme social agenda.”

Effective December 31, 2025, USDA adopted new funding conditions which require states to promise to comply with the Trump Administration’s policies related to gender identity, diversity, immigration and fair athletic opportunities for girls and women. However, Attorney General Clark and the attorneys general explain in their lawsuit that USDA does not fully identify or limit which policies the states must comply with, leaving states at the mercy of the Administration for enforcement of the new conditions.

USDA programs feed about 30 million children across the nation through the school lunch program, strengthen the American food ecosystem from farm to table, support national security through a robust and safe domestic agriculture community, fund university research to advance domestic food production, and save lives and infrastructure by funding firefighting programs.

In Vermont, USDA child nutrition programs, for example, serve tens of thousands of children each day. These programs also stimulate the local food economy, with over $1.25 million of the funds spent on local Vermont products in the 2024-2025 school year. The unlawful grant terms threaten Vermont’s ability to provide food sufficient to feed the children who rely on it, and schools and daycare centers would face budget shortfalls for meals already purchased but not yet reimbursed. Enforcement of the unlawful funding conditions would threaten approximately $57.4 million in food and funding for FY2026 under the child nutrition programs alone. Federal funds for other programs could also be at risk, including nearly $165 million in funding for Vermont’s SNAP and WIC programs.

Attorney General Clark and the coalition have asked the court to prohibit USDA from implementing or enforcing the illegal conditions.

Joining Attorney General Clark in filing the lawsuit are the attorneys general of California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Virginia, Washington and Wisconsin.

A copy of the complaint is available on our website.

This lawsuit is the 46 th case Attorney General Clark has brought against the Trump Administration since President Trump took office in January 2025. For more information on actions taken by the Attorney General on behalf of Vermonters, visit our website.

CONTACT: Amelia Vath, Senior Advisor to the Attorney General, 802-828-3171

Source

Analysis generated by AI. Source diff and links are from the original.

Classification

Agency
State AG
Filed
March 23rd, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
AG: Vermont Press Releases

Who this affects

Applies to
Government agencies Healthcare providers Nonprofits
Industry sector
9211 Government & Public Administration
Activity scope
Grant Management Program Administration
Geographic scope
United States US

Taxonomy

Primary area
Consumer Finance
Operational domain
Compliance
Topics
Public Health Government Contracting

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