Trump Administration Moves to Withdraw Funding from Local Governments Facing Judge's Preliminary Injunction
Denver and other plaintiffs score a legal victory as federal grants remain protected after a judge blocks Trump administration's threatened cuts.
A federal judge in Washington state has issued a preliminary injunction halting the Trump administration's attempt to withhold transportation funding from Denver and other local governments. This legal action came after Denver, joined by dozens of other municipalities, filed a lawsuit in May challenging the administration’s move to tie nearly $4 billion in essential federal transportation grants to compliance with new policy requirements.
The core of the dispute centers on an April memo issued by U.S. Transportation Secretary Sean Duffy, which warned grant recipients that they risked losing federal funding if they failed to align with the administration’s positions on diversity, equity, and inclusion initiatives. The memo also threatened financial penalties for jurisdictions that did not assist in enforcing federal immigration laws.
In his ruling, the judge determined that the Trump administration’s actions likely overstepped the Executive Branch’s authority and violated the Separation of Powers doctrine. The court found that even the threat of losing critical funding inflicted significant harm on the plaintiffs. "It is this looming risk itself that is the injury, and one that Plaintiffs are already suffering," the order stated. The judge further emphasized that the acute budgetary uncertainty facing cities and counties as a result of these threats constitutes irreparable harm in the eyes of the law.
Denver Mayor Mike Johnston welcomed the court’s decision, underscoring the city’s commitment to following all applicable laws at every level of government. "Denver follows all laws — federal, state, and local — and it should not be so much to ask the White House to do the same," Johnston said in a statement. He expressed appreciation for the court’s swift intervention in protecting vital funds used for maintaining and expanding transportation infrastructure across the region.
This injunction temporarily ensures that federal transportation funding will continue to flow while the broader lawsuit proceeds. The outcome of the case could have wide-reaching implications for how future administrations use federal grant programs to influence local policies on issues ranging from immigration enforcement to diversity initiatives.
