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More cities, counties join lawsuit seeking to block new conditions on federal funding

Jul 14, 2025
2 min read
New townhomes are under construction this year in Minnesota. Two Minnesota counties are among dozens of cities and counties suing over Trump administration threats to tie federal funding for housing and other programs to local policy on immigration enforcement; diversity, equity and inclusion; and abortion. (Ellen Schmidt/Minnesota Reformer)
New townhomes are under construction this year in Minnesota. Two Minnesota counties are among dozens of cities and counties suing over Trump administration threats to tie federal funding for housing and other programs to local policy on immigration enforcement; diversity, equity and inclusion; and abortion. (Ellen Schmidt/Minnesota Reformer)

By Tim Henderson

Stateline


Twenty-eight cities and counties including Baltimore, Los Angeles, Milwaukee and Rochester, New York, joined a lawsuit July 10 challenging Trump administration attempts to withhold federal funds because of local policies on immigration enforcement; diversity, equity and inclusion; gender equity; and abortion access.


Funding for housing, transit, health care, civil rights and other essential programs has been threatened by new grant conditions, according to the lawsuit, which now includes 60 cities, counties and other entities.


U.S. District Judge Barbara Rothstein issued a restraining order in May against tying unrelated federal funds to ideological conditions, saying the Trump administration was forcing the local governments to “choose between accepting conditions that they believe are unconstitutional, and risking the loss of hundreds of millions of dollars in federal grant funding.”

The first places to sue in early May were three counties in Washington state, two more in California, plus Boston, Columbus, Ohio, and New York City. Since then, 52 cities, counties and other entities have joined from states including Arizona, Colorado, Maryland, Minnesota, Oregon, New Mexico, Pennsylvania, Tennessee and Wisconsin.


Two of the latest to join are Ramsey County and Hennepin County in Minnesota, where Minneapolis and St. Paul and located. Hennepin County has almost $272 million in federal funding for this year for things such as emergency shelter and road projects, all threatened by new grant conditions imposed by the Trump administration, according to the court filing.


“Communities shouldn’t have to lose critical services because of the Trump administration’s political agenda,” said Jill Habig, CEO of Public Rights Project, a nonprofit legal organization doing work in the case. “These federal funding conditions aim to strip billions of dollars from local governments working to help people thrive.”


Lawyers for the Trump administration opposed the injunction, saying the court had no authority to require the federal government to pay local governments grant money.


Stateline reporter Tim Henderson can be reached at thenderson@stateline.org. Stateline is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.

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