DJ Próvaí, who formed Kneecap with friends Mo Chara and Moglai Bap, was the only member of the trio who attended court.
Following the hearing, he claimed Ms Badenoch had “overreached” by denying the grant.
“We are paying taxes and surely we have a right to the benefit of those taxes, regardless of our political beliefs,” he said.
Kneecap’s solicitor Darragh Mackin claimed Ms Badenoch’s decision was an attack on identity, freedom of expression and the fundamentals of the Good Friday Agreement.
“The underpinning discrimination is hiding in plain sight,” he alleged.
“The secretary of state has now conceded that she has a case to answer, and we welcome the court’s indication that this case will be heard early in the new term.”
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