States Sue USDA Over Grant Terms & Conditions
April 13, 2026
A group of 21 states has filed a lawsuit against the U.S. Department of Agriculture (USDA), challenging grant terms that would require grantees to align with administration policies on gender, immigration, and diversity. The lawsuit, filed in federal court in Massachusetts, could have significant implications for other agencies that attempt to integrate executive orders and similar terms into federal grants.
For background, on December 31, USDA released new standard conditions for future awards, including programs that support school meals. The new General Terms and Conditions — the first document of its kind for USDA — became effective immediately. The new terms include various new requirements that prohibit USDA funds from being used for activities that would violate executive orders, including those on gender identity and allowing trans students to play women’s and girls’ sports. Grantees would also be required to certify that they do not, and will not during the term of the award, operate any programs that advance or promote diversity, equity, and inclusion in violation of federal anti-discrimination laws.
Most notably for district leaders, one part (Section 13.10) requires grantees to comply with an executive order prohibiting undocumented immigrants from receiving public benefits. Some have misread this provision to mean that school districts may have to limit who they serve through the National School Lunch Program and School Breakfast Program. That is not the case.
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 USC 1615) explicitly states that students who are eligible to receive free public education benefits shall not be made ineligible to participate in the NSLP and SBP on the basis of citizenship, alienage, or immigration status. As a federal statute, this language supersedes that of the new General Terms and Conditions.
The impact on other programs, such as Summer EBT, Farm to School, and the Child and Adult Care Food Program, remains in question until we receive further guidance from USDA.