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Federal Power to Withhold Grants

The federal power to withhold or condition grants to states flows from the Spending Clause, with the Supreme Court upholding conditional spending while carving out constitutional limits.

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Jan 13, 2026
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What legal authority allows the federal government to withhold or condition grants to states, and how have courts ruled on similar freezes?

The federal power to withhold or condition grants to states flows principally from the Spending Clause—Article I, Section 8—which gives Congress broad authority to spend for the “general Welfare” and ...