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Judge Rules Trump Administration Illegal NEH Grant Cuts; TikTok Settlement Looms

AI-written from public sources Written by Utah News AI and quality-checked before publishing. How it was made ↓
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The Trump administration is facing legal setbacks and widespread scrutiny as it pursues aggressive policy shifts, including illegal agency funding cuts and a nationwide Medicaid fraud audit. Simultaneously, the administration is negotiating a $400 million settlement with TikTok to fund Washington, D.C. beautification projects.

Key takeaways

  • A federal judge ruled that DOGE and the Trump administration illegally canceled $100 million in NEH grants using ChatGPT to target DEI programs.
  • The Trump administration is negotiating a $400 million settlement with TikTok to fund 'beautification' projects in Washington, D.C.
  • CMS Administrator Dr. Mehmet Oz announced a 30-day deadline for all 50 states to submit Medicaid provider revalidation plans as part of a nationwide fraud audit.
  • Protests against the administration's immigration and foreign policy tactics were held in Heber City as part of a nationwide 'No Kings' movement.

A federal judge ruled Thursday that the Trump administration and the Department of Government Efficiency illegally canceled approximately $100 million in National Endowment for the Humanities grants, finding the cuts lacked constitutional authority.

Details on illegal grant cancellations

U.S. District Court Judge Colleen McMahon stated in a 143-page decision that the administration had no power to block or delay spending appropriations based on presidential policy preferences, according to reports by CBS News and The Washington Post. The Department of Government Efficiency used ChatGPT to revoke more than 1,400 grants that were previously awarded to scholars and research institutions.

Constitutional violations in funding cuts

The cuts targeted programs related to diversity, equity, and inclusion, which the administration sought to eliminate throughout the federal government in 2025. McMahon ruled the termination violated the First Amendment and the equal protection component of the Fifth Amendment.

TikTok settlement and D.C. projects

While facing judicial setbacks in agency funding, the Trump administration is reportedly nearing a $400 million settlement with TikTok to resolve a lawsuit regarding child privacy violations. Sources familiar with the discussions told ABC News that the administration intends to use these funds for Washington, D.C. beautification projects.

Proposed use of settlement funds

The proposed funds could support initiatives such as a 250-foot triumphal arch near Arlington National Cemetery. White House officials have discussed directing the money to the Department of Interior or the Department of Commerce, though the settlement marks a departure from typical practices where funds are used to compensate victims of alleged wrongdoing.

National Medicaid anti-fraud expansion

The administration is also expanding its Medicaid anti-fraud efforts to all 50 states. Dr. Mehmet Oz, administrator of the federal Centers for Medicare & Medicaid Services, announced Tuesday that every state must submit a plan within 30 days to revalidate participating healthcare providers.

While President Trump previously directed Vice President JD Vance to focus on fraud in Democratic-led states, Oz stated the effort will now include all states. The move follows actions such as the withholding of $259.5 million in federal Medicaid payments to Minnesota.

The administration's policies continue to drive significant local and international tension. In Heber City, hundreds of protesters gathered for a 'No Kings' rally to demonstrate against ICE tactics and the ongoing war in Iran, which began following U.S. and Israeli airstrikes in late February.

In Phoenix, the upcoming Border Security Expo is expected to feature high-ranking officials from ICE and Customs and Border Patrol. The event will showcase military-grade surveillance technology from vendors seeking government contracts, some of which have ties to Trump allies.

In Garfield County, local officials noted that federal policy changes are impacting western lands, with 18,000 acres of allotments being reopened under new grazing reforms moving through the Trump administration.

How this story was made

13 sources gathered

Coverage collected from the outlets listed above. · May 11, 2026

Written by AI

Utah News AI (on-device model) · May 14, 2026

Quality checks

Passed editorial quality review (75/100)

Published

90 days ago · May 26, 2026

This story was written by AI from the public sources listed above and passed automated quality review before publishing.

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