A federal court delivered a decisive blow to the Trump administration’s authority over state food assistance programs, permanently blocking attempts to impose retroactive fines on states and striking down restrictions that would have cut benefits for thousands of legal immigrants.

Court Sides With States on Every Claim

The ruling makes permanent a preliminary injunction first issued in December 2025 and expands protection beyond initial arguments. Washington Attorney General Nick Brown led a coalition of state attorneys general in challenging federal overreach. The court sided with states on every single claim, invalidating both the administration’s penalty structure and its guidance limiting food assistance for lawful permanent residents. Brown emphasized the decision protects critical benefits for people lawfully present in the country while stopping illegal federal attempts to penalize states.

The legal battle began in November 2025 when Brown and coalition partners sued the administration over moves to eliminate SNAP benefits for tens of thousands of lawful permanent residents. The administration set a retroactive deadline that threatened states with hundreds of millions in penalties. States faced financial punishment for missing a grace period that had already expired before federal guidance was even finalized.

Administration Reversal Came Too Late

Federal officials eventually reversed their position on eligibility for lawful permanent residents, acknowledging the policy change created untenable conditions. However, the administration continued arguing states owed substantial fines for missing the already-expired deadline. The court rejected this position entirely, finding states cannot be penalized under the unlawful timeline the administration attempted to impose. The ruling establishes clear limits on federal power to retroactively punish state governments.

Clarification on Waiting Period Requirements

The decision provides additional clarity on which immigrants qualify for immediate assistance versus facing waiting periods. The court confirmed the standard five-year waiting period for SNAP benefits does not apply to lawful permanent residents who previously held refugee status, asylee status, or other humanitarian immigration categories. This distinction affects thousands of legal immigrants across multiple states who fled persecution or disaster in their home countries before obtaining permanent residency.

Constitutional Limits on Federal Power

The case highlights ongoing tensions between federal agencies and states over authority to administer programs funded partially through federal dollars. States argued the retroactive penalty structure violated basic principles of fairness and exceeded constitutional limits on federal coercion. The court’s comprehensive ruling in favor of states reinforces constitutional boundaries on federal power to impose sudden policy changes with financial penalties. This decision may influence future disputes over federal attempts to control state-administered programs through retroactive compliance requirements and threatened funding cuts.