A federal judge on Wednesday blocked the Trump administration from withholding disaster relief funds from states that refuse to cooperate on immigration enforcement.

U.S. District Judge William Smith, appointed to the bench in Rhode Island by President George W. Bush, deemed it unconstitutional to require states to cooperate in federal immigration activities to receive disaster relief funding, according to court documents. The ruling comes months after a coalition of 20 state Democratic attorneys general sued the Trump administration over threats to withhold billions of dollars over sanctuary policies. (RELATED: Blue States Sue Over Trump Policy Withholding Millions In Funds Over Sanctuary Policies)

“Plaintiff States are entitled to injunctive relief,” Smith wrote in his ruling, issuing a permanent injunction against the Trump administration. “First, Plaintiff states have succeeded on the merits of their claims: the contested conditions are both arbitrary and capricious and unconstitutional.”

“Second, Plaintiff States stand to suffer irreparable harm; the effect of the loss of emergency and disaster funds cannot be recovered later, and the downstream effect on disaster response and public safety are real and not compensable,” the federal judge continued, calling the administration’s directive “coercive, ambiguous” and accusing it of undermining the system of federalism.

A spokesperson for the Department of Justice did not immediately respond to the Daily Caller News Foundation.

US Immigration and Customs Enforcement (ICE) agents look over lists of names and their hearing times and locations inside the Federal Plaza courthouse before making arrests on June 27, 2025 in New York. (Photo by Bryan R. SMITH / AFP) (Photo by BRYAN R. SMITH/AFP via Getty Images)

Homeland Security Secretary Kristi Noem previously directed her department’s sub-agencies, including the Federal Emergency Management Agency, to cease federal funding to sanctuary cities. Department of Transportation Secretary Sean Duffy issued a letter in May informing states that recipients of transportation funding must comply with federal law.

“Federal grants come with a clear obligation to adhere to federal laws,” Duffy said to states at the time. “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.”

In May, a coalition of Democratic attorneys general responded by filing two separate lawsuits in Rhode Island against the Department of Homeland Security and the Department of Transportation, claiming both departments imposed “sweeping new conditions” requiring states to assist with federal immigration enforcement efforts or lose billions in federal funding.

Plaintiff states include California, Illinois, Rhode Island, New Jersey, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New York, Oregon, Vermont, Washington, Wisconsin, and the District of Columbia, according to court documents.

The ruling marks the latest clash between the Trump administration and sanctuary localities that do not wish to work with Immigration and Customs Enforcement (ICE) agents.

New York City leaders sued the DOJ in July for the city’s sanctuary laws, one of the many targets in a growing list of lawsuits from federal prosecutors. Throughout 2025, the White House has sued Chicago, Los Angeles, Boston and New York State for instituting anti-ICE policies. Some of this pressure has worked, with the mayor of Louisville declaring in July that his city would begin cooperating with ICE.

The Trump administration continues to maintain a running list of states, cities and counties it deems to be sanctuary havens for illegal migrants.

The White House has also deployed boots on the ground in major sanctuary cities, with federal immigration operations in Los Angeles, Washington, D.C. and Operation Midway Blitz taking place in Chicago.

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