At a Glance
- President Trump says all federal money to states with sanctuary cities will stop Feb. 1
- Two prior attempts to cut sanctuary funding were blocked in court
- No details yet on which programs will lose money
- Why it matters: States could lose billions for health, food aid, and daycare
President Donald Trump announced Tuesday that every state containing a so-called sanctuary city will lose federal funding starting Feb. 1, broadening earlier threats that targeted only individual cities.
The declaration, delivered late in a Detroit Economic Club speech, gives states and cities less than two weeks to adjust policies or risk losing unknown sums. Courts have twice rejected similar moves.
What Trump Said
“We’re not making any payments to sanctuary cities or states having sanctuary cities,” Trump told the audience. He accused them of protecting criminals “at the expense of American citizens” and said the policy “breeds fraud and crime.”
Asked in Washington which funds will be cut, the president replied, “You’ll see. It’ll be significant.”
No executive order or regulation has yet been released.
Sanctuary Definition Remains Fuzzy
The term “sanctuary city” has no legal definition. Generally, it refers to local governments that limit cooperation with federal immigration agents to shield undocumented residents from deportation.
Last year the Justice Department published a list of roughly three dozen jurisdictions it considers sanctuaries. The roster is dominated by Democratic areas:
- States: California, Connecticut, New York
- Cities: Boston, New York City
- Counties: Baltimore County, Maryland; Cook County, Illinois
An earlier, longer list was scaled back after officials complained inclusion criteria were unclear.
Court History
Federal judges blocked two previous attempts to strip sanctuary money:
- 2017: Early in Trump’s first term, courts ruled the administration could not withhold broad federal grants from non-cooperating cities.
- 2024: A California judge struck down an executive order that sought to withhold funds from sanctuary jurisdictions. Government lawyers argued the challenge was premature because no conditions had been finalized.
## Funding Already Under Threat
Even before the Feb. 1 deadline, several departments have moved to halt money:
Agriculture
- The U.S. Department of Agriculture warned states that refuse to share SNAP recipient data will lose administrative dollars. No benefits have been stopped, and litigation is ongoing.
Health and Human Services
- Last week HHS paused daycare subsidies and other low-income family aid to five Democratic-led states over unspecified fraud suspicions. A court has temporarily blocked the freeze.
Minnesota Targeted
- USDA says it is “freezing funding” in Minnesota without detailing amounts or programs.
- The Centers for Medicare and Medicaid Services told Minnesota it intends to withhold $515 million every quarter from 14 Medicaid programs labeled “high risk.” The sum equals one-fourth of federal dollars for those initiatives. State officials are appealing.
What Could Be Affected
Federal money flowing to states covers wide areas:
- Medicaid and children’s health
- Food stamps and school lunches
- Highway and transit grants
- Education and daycare subsidies
- Law enforcement and homeland security aid
Because no guidance has been issued, it is unclear whether Trump will try to stop all grants or target specific programs.
Key Takeaways
- The Feb. 1 cutoff date is less than two weeks away and no formal plan has been published.
- Previous courtroom losses show legal hurdles remain.
- States such as California, New York, and Illinois-heavily represented on the sanctuary list-receive tens of billions in federal aid annually.
- Agencies are already testing smaller funding freezes, signaling the administration’s willingness to act while litigation plays out.
