Federal judge halts Trump’s plan to cut funding for sanctuary states that refuse to cooperate

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A federal judge in Rhode Island issued a preliminary injunction on Thursday, blocking the Trump administration from denying federal transportation funds to states that do not cooperate with immigration enforcement authorities.

Twenty Democratic-led states brought a lawsuit against President Donald Trump’s administration, challenging a new Department of Transportation (DOT) policy of withholding or terminating federal funding to any state or local government that does not comply with immigration-enforcement policies.

During Trump’s first day in office, he issued a sweeping executive order that would deny federal funds to “so-called sanctuary jurisdictions.”

U.S. District Court Judge John J. McConnell Jr. issued the preliminary injunction against the Trump administration’s efforts on Thursday, saying it is “unconstitutional and/or unlawful” because it violates the Administrative Procedure Act.

ICE-AVERSE STATES WON’T GET ‘ONE RED CENT’ FROM FEDS TO REBUILD INFRASTRUCTURE, SECRETARY DUFFY WARNS

ice AGENT

U.S. Immigration and Customs Enforcement (ICE), agents detain an immigrant in Los Angeles, California. (Getty Images)

McConnell also said the Trump administration’s action is ultra vires – or done beyond one’s legal authority – and exceeds Congress’s powers under the Spending Clause.

Under the preliminary injunction, the Trump administration is “prohibited from implementing or enforcing the Immigration Enforcement Condition as set forth in the Duffy Directive,” McConnell wrote.

He also said the defendants are “prohibited from withholding or terminating federal funding based on the Immigration Enforcement Condition as set forth in the Duffy Directive absent specific statutory authorization.”

FEDERAL JUDGE PARTIALLY BLOCKS TRUMP’S EFFORT TO DENY FUNDING TO PRO-DEI PUBLIC SCHOOLS

Secretary of Transportation Sean Duffy testifies during a hearing before the House Appropriations Committee

Secretary of Transportation Sean Duffy testifies during a hearing before the House Appropriations Committee in the Rayburn House Office Building on May 14, 2025, in Washington, DC. Duffy testified before the Subcommittee on Transportation, and Housing and Urban Development, and Related Agencies on the Transportation Department’s proposed 2026 fiscal year budget. (Samuel Corum/Getty Images)

“Defendants are prohibited from taking adverse action against any state entity or local jurisdiction, including barring it from receiving or making it ineligible for federal funding, based on the Immigration Enforcement Condition, absent specific statutory authorization,” the ruling continued. “The Court forbids and enjoins any attempt to implement the Immigration Enforcement Condition, and any actions by the Defendants to implement or enforce the Immigration Enforcement Condition.”

Fox News Digital has reached out to the White House for comment on the matter.

Transportation Secretary Sean Duffy, even this week, has warned “rogue state actors” who do not cooperate with U.S. Immigration and Customs Enforcement (ICE) and federal immigration enforcement that they may be on the hook to clean up their own mess.

FEDERAL JUDGE DECLARES TRUMP ADMIN BLOCKING FEDERAL MONEY FROM SANCTUARY CITIES UNCONSTITUTIONAL

Donald Trump

President Donald Trump (Bill Pugliano via Getty Images)

Most recently, Duffy directed his comments toward California officials who have distanced themselves from immigration enforcement while riots and protests continue to break out in places like Los Angeles.

Duffy has suggested political leaders work better with the Trump administration.

“The USDOT will not fund rogue state actors who refuse to cooperate with federal immigration enforcement,” Duffy said Monday. “And to cities that stand by while rioters destroy transportation infrastructure — don’t expect a red cent from DOT, either.”

Duffy said in April that federal grants come with the obligation to adhere to federal law.

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“It shouldn’t be controversial – enforce our immigration rules, end anti-American DEI policies, and protect free speech. These values reflect the priorities of the American people, and I will take action to ensure compliance,” he said.

Fox News Digital’s Charles Creitz contributed to this report.

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