Local governments are pushing back against a sweeping move by the Trump administration that ties critical Department of Homeland Security (DHS) funding to strict compliance with federal immigration enforcement and other politically charged mandates. The administration’s new terms demand that cities and counties abandon programs supporting diversity, forgo benefits for undocumented immigrants, and align with other executive directives—or risk losing funds and facing potential legal action.
Santa Clara County, leading the lawsuit, warns that these conditions jeopardize essential services—from hiring first responders and running search and rescue operations to disaster training for major events like Super Bowl LX and the 2026 FIFA World Cup. “Governments shouldn’t have to pass a political litmus test to be able to care for their communities,” said the county’s legal counsel.
The lawsuit brings together major cities and counties, including San Francisco, Los Angeles, San Diego, Oakland, Tucson, and King County, representing roughly 30 million residents and stakes of over $350 million in federal grants. Plaintiffs argue that the administration has deliberately designed the grant requirements to expose recipients to liability under the False Claims Act, which could lead to triple damages.
A May announcement from the Deputy Attorney General also signaled a new task force aimed at scrutinizing grant recipients and encouraging private lawsuits against grantees adopting what were described as “divisive” policies, including diversity, equity, and inclusion initiatives.
Local leaders contend the new rules could affect virtually all major DHS grants, from disaster relief to public safety and homeland security. Previous attempts to cut federal funding have faced legal challenges from Democratic-led states, resulting in temporary blocks, and cities now find themselves increasingly in court to protect the grants they rely on to keep communities safe.
