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Home»POLICY & ISSUES»Trump Admin Preparing To Withhold Federal Funds From ‘Sanctuary Cities’

Trump Admin Preparing To Withhold Federal Funds From ‘Sanctuary Cities’

Frank BrunoMarch 29, 2025Updated:December 23, 2025 POLICY & ISSUES
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Billions in federal grants aimed at helping communities prepare for disasters and prevent terrorism could be pulled from localities that maintain “sanctuary” policies—those that block local law enforcement from cooperating with federal immigration authorities. According to a report from The Hill, Department of Homeland Security Secretary Kristi Noem signed a directive stating that FEMA programs benefiting sanctuary jurisdictions will undergo review and could face potential “termination.”

The document was one of several memos written by FEMA Acting Administrator Cameron Hamilton on March 20, all of which received approval from Noem. The administration clarified that grants won’t be revoked from high-risk communities solely because they are sanctuary jurisdictions. Instead, each grant will be evaluated based on its purpose, potential benefits and risks, and “the context of which organization is receiving the award,” according to the memo.

According to the report, the memo outlines several grants that could face immediate termination. Among them are a $1.9 billion program aimed at helping high-risk urban areas prevent and prepare for terrorist attacks, a $760 million initiative supporting states and tribes in terrorism prevention, and a $480 million program dedicated to enhancing emergency preparedness for states and tribal governments. The document signed by Secretary Noem marked those grants with a “red” designation, signaling they are at immediate risk, according to The Hill. Several other grants received a “yellow” classification, indicating they are under review and could face revocation in the near future.

“Yellow” programs include assistance for major disaster survivors, funding to repair infrastructure damaged by disasters, and security grants for nonprofit organizations. While these programs remain under review, the Department of Homeland Security will now conduct weekly evaluations before approving any payments.

FEMA has frozen nearly $10 billion in disaster aid intended for nonprofits—including hospitals—as it reviews potential funding sources to support services for illegal immigrants, according to agency documents obtained by E&E News. The suspended funds had previously been approved to help nongovernmental organizations rebuild their facilities after natural disasters and to offer short-term assistance to disaster survivors.

The move comes amid heightened scrutiny of FEMA following reports of politically motivated service denials during the Biden administration. One former FEMA director testified that she was instructed to avoid providing aid to homes displaying Trump lawn signs in the aftermath of Hurricane Milton. She later shared this directive in a staff slideshow presentation.

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