← Back to NewsMaze
COURTS

Appeals court questions effort to dismantle three federal agencies

Judges pressed the administration over attempts to reduce three congressionally created agencies by cutting staff, grants and services.

September 16, 2026 · NewsMaze Editorial Desk
Appeals court questions effort to dismantle three federal agencies
Photo: Joe Ravi / Wikimedia Commons · CC BY-SA 3.0

What happened

A federal appeals court heard arguments over the Trump administration's efforts to sharply reduce the Minority Business Development Agency, the Federal Mediation and Conciliation Service and the U.S. Interagency Council on Homelessness.

What changed

The judges questioned whether an administration can effectively stop congressionally created agencies from functioning by removing most personnel and terminating services without Congress formally abolishing those agencies.

Why it matters

The dispute tests the boundary between presidential control over the executive branch and Congress's authority to create and fund federal agencies.

What happens next

The case remains before the appeals court. A ruling could shape how far future administrations can go in shrinking agencies established by statute.