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Appeals court keeps injunction protecting $127 million in USDA grants while the appeal continues

A federal appeals panel denied the U.S. Department of Agriculture's request to stay a preliminary injunction in litigation led by the Urban Sustainability Directors Network. The order keeps the injunction in effect while the appeal proceeds and allows 24 nonprofit and local-government grantees to continue accessing approximately $127 million under USDA's Increasing Land, Capital, and Market Access Program. The decision does not resolve the underlying lawsuit.

Status matters. This page records a sourced development, not a completed No Halo investigation. An allegation is not a finding. Dismissals, settlements, judgments, corrections and final outcomes remain distinct.

Donor relevance

Why this matters

The order preserves access to substantial federal funding for agricultural, land-access and community organizations during the appeal, preventing the earlier grant cancellations from immediately taking effect.

Attribution

Who reported or established this

FarmSTAND, counsel for the plaintiffs, reported that a three-judge panel denied USDA's stay request and that the injunction restoring access to the grants remains in place.

Evidence limits

What remains unverified

No Halo has not established how much funding has actually been disbursed to each plaintiff, whether USDN itself has received all amounts due or how the appeal will ultimately be decided.

Right of reply

Organization response

Plaintiffs' counsel said the order keeps the restored funding available while litigation continues. No separate response from USDN was located in the consulted material.

Classification

How No Halo records this event

Event type: Judgment. Current state: Pending. No Halo preserves the current procedural state rather than treating every mention as a finding.

Published September 29, 2026 · Last verified October 2, 2026. See an error or a later outcome? Submit a correction or right of reply.