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Yes, but they'd need to know what share of recipients are US citizens to know how to divvy up the funds. That won't be evenly distributed across states.
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The question would be if they could do that in time to stop full payments to citizens. Once the payments are made, it's kind of a moot point.
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Even if the lawsuits succeed, tapping contingency funds is a short term solution, probably 3 weeks or less
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True, but USDA could say: We are giving you the money but make sure priority goes to natural born citizens.
In an ideal world, the NGO's that paid for all those illegals to come, organized the caravans, should be compelled to pay.