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A federal judge has temporarily halted the Trump administration from enforcing new rules that would have reshaped how more than $350 million in Department of Homeland Security (DHS) grants are distributed to cities and counties across California, Washington, and Arizona. The ruling, issued by U.S. District Judge William Orrick in San Francisco, found that the administration likely overstepped its authority by tying disaster-related funding to local cooperation with federal immigration enforcement and compliance with several executive orders.
Judge Orrick determined that the administration’s attempt to impose these conditions through executive action likely violated federal law. The blocked conditions would have required local governments to support federal immigration operations, discontinue diversity-focused programs, deny certain benefits to undocumented immigrants, and comply with the president’s other immigration-related directives.
The lawsuit, filed on September 30 by major cities including San Francisco, Los Angeles, and San Diego—along with Santa Clara County as the lead plaintiff—argues that the federal government was using DHS and FEMA grants as political leverage. These grants are vital for emergency preparedness, funding first responders, search-and-rescue efforts, disaster training, and readiness for major events such as Super Bowl LX and the 2026 FIFA World Cup.
Collectively, the plaintiffs represent approximately 30 million residents and face the potential loss of more than $350 million in federal funding. According to the complaint, the administration had also threatened criminal prosecution or clawbacks of funds from jurisdictions that accept DHS money but refuse to comply with the new mandates.
The ruling marks a significant setback for the administration’s effort to pressure local governments on immigration issues. For now, affected cities and counties can continue relying on crucial DHS funding without facing the newly imposed requirements.
