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The phrase "a setback that the" is grammatically correct and can be used in written English.
It can be used when discussing an obstacle or difficulty that has occurred in a particular context, often followed by a description of the situation or consequences.
Example: "The project faced a setback that the team had not anticipated, causing delays in the timeline."
Alternatives: "an obstacle that the" or "a challenge that the".
Exact(2)
Then, on Monday, the authority announced that revenue from a payroll tax for transit that the Legislature approved in May was running $200 million less than had been expected, a setback that the authority's chief financial officer, Gary J. Dellaverson, called "a shocking development".
It was a setback that the general was determined to avenge - Elephant Pass was recaptured by his troops in January 2009.
Similar(58)
Pharmaceutical companies have called off one of the largest drug studies in Alzheimer's disease, a setback that shrinks the chances of finding a treatment for the condition anytime soon.
"We've lost the first two blokes chosen and that's a setback, that's the reality of it," said head coach Graham Henry.
"The church has suffered a serious credibility problem while it worked on the legislation, and this is a setback that could cement the church's reputation as being outdated and out of touch".
After finding just his fifth fairway of the round, he put his second shot into the water, a setback that left him squatting in the fairway with his head buried in his hands.
Brighton lost to Crystal Palace in the play-offs last campaign, a setback that ultimately led to the departure of boss Gus Poyet.
Now the bill will not move until fall, a setback that could ripple through the Senate calendar, putting other plans to create jobs in energy and infrastructure in legislative limbo.
But the court mandated that Anthony Levandowski, a star engineer leading the program, be prohibited from working on a critical component of autonomous vehicle technology for the duration of the litigation, a setback that could hamper Uber's development efforts.
And that might still happen, but first he must overcome a setback that has stirred concern in the front office.
That's not a setback, that's a catastrophe.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com