President Donald Trump announced on Tuesday that beginning on February 1, sanctuary cities and states across the United States will no longer receive federal payments. The President, speaking at the Detroit Economic Club, expressed his administration's position that sanctuary jurisdictions provide protection for criminals, which undermines the safety of American citizens.
The move to freeze funding is linked to investigations in Minnesota, where the administration alleges Somali Americans were involved in fraudulent activities. The President also addressed what he described as "fake" protests in Minnesota, in response to recent Immigration and Customs Enforcement (ICE) operations. The White House has issued 90-day notices to states, including California, that bill the federal government for immigrant-related expenses. Additionally, approximately 8,000 Small Business Administration loans in Minnesota have been suspended, targeting suspected fraudulent activities.
Sanctuary jurisdictions typically restrict local law enforcement's cooperation with federal immigration authorities. The Justice Department has identified 11 states, including California, Illinois, Minnesota, and New York, as well as the District of Columbia, as sanctuary regions. Furthermore, 18 cities and four county governments have received similar designations.
Local leaders swiftly reacted to the administration's announcement. New York City Mayor Zohran Mamdani took to social media to defend his city's stance, maintaining that values and laws are not negotiable. New York Governor Kathy Hochul also voiced her opposition, stating that while the state will cooperate to address dangerous criminals, it will not support aggressive actions against families.
This federal policy comes amidst a backdrop of legal challenges to the government's attempts to withhold funds from sanctuary areas. In April 2025, a federal judge in San Francisco blocked the administration from cutting funds to 16 sanctuary jurisdictions. The term "sanctuary jurisdiction" lacks a statutory definition, but the DOJ considers factors such as limited cooperation with ICE and the provision of benefits to illegal aliens.
President Trump has previously attempted to withhold federal funding as leverage against sanctuary policies, including a bid to withhold child care and state aid funds, which was blocked by courts in New York and Washington, D.C. Attorney General Pam Bondi supported the latest measure, emphasizing the risks sanctuary policies pose to American citizens.
The recent ICE shooting in Minneapolis has intensified the conflict between federal and state officials over public safety and investigative authority. Senators and local leaders from sanctuary jurisdictions have indicated they will legally challenge the funding suspension. Chicago Mayor Brandon Johnson, mirroring statements from New York officials, signaled his intent to take the matter to court.
The forthcoming legal battles are expected to shape the enforceability of the federal government's funding suspension. This development marks another chapter in the ongoing tension between the Trump administration and local governments over immigration policy and enforcement practices.
