President Donald Trump announced Tuesday that federal payments to sanctuary cities and states will be suspended beginning Feb. 1, citing concerns that such jurisdictions prioritize protecting criminals over American citizens.
Speaking at the Detroit Economic Club, Trump said, “Starting February 1st, we’re not making any payments to sanctuary cities or states having sanctuary cities because they do everything possible to protect criminals… We are not making any payments to anybody that supports sanctuary cities.”
The administration linked the funding freeze to ongoing investigations in Minnesota, claiming that a number of Somali Americans were involved in fraudulent activity.
Trump also attributed recent unrest related to Immigration and Customs Enforcement (ICE) operations in the state to what he called “fake” protests.
Officials said the White House issued 90-day notices to states, including California, that submit bills to the federal government for immigrant-related costs and suspended nearly 8,000 Small Business Administration loans to suspected scammers in Minnesota.
Sanctuary jurisdictions often limit local law enforcement cooperation with federal immigration authorities.
The Justice Department (DOJ) has designated 11 states—including California, Illinois, Minnesota and New York—as sanctuary states.
The District of Columbia also holds the designation.
Eighteen cities, such as New York City, Chicago, San Francisco, New Orleans, Denver and Portland, Oregon, along with four county governments, are similarly classified, according to USA Today.
The announcement drew immediate pushback from local leaders.
New York City Mayor Zohran Mamdani posted on social media, “Our values and our laws are not bargaining chips. We will always defend New Yorkers, even in the face of federal threats to withhold funding.”
He told reporters he had reached out to Trump to express opposition but had not received a response.
New York Gov. Kathy Hochul (D) also opposed the move, ABC 7 reports.
A spokesperson said, “New York will work with the federal government to go after dangerous criminals, but we will not support their aggressive attacks on hardworking families. If the Trump Administration tries to go after the funding New Yorkers rely on, we’ll see them in court.”
Hochul emphasized that residents should be able to sue federal agents if constitutional rights are violated.
The policy comes amid ongoing legal disputes over federal 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.
While no statutory definition of a sanctuary jurisdiction exists, the DOJ considers factors such as limited cooperation with ICE, provision of benefits to illegal aliens and refusal to share immigration information about detainees.
Trump has pursued similar funding restrictions in the past, including efforts to withhold $10 billion in child care funds and nearly $8 billion in aid to states that supported former Vice President Kamala Harris in the 2024 election, Politico notes.
Courts in New York and Washington, D.C., blocked both measures. Attorney General Pam Bondi criticized sanctuary policies, stating they “impede law enforcement and put American citizens at risk by design.”
The announcement follows last week’s ICE shooting in Minneapolis, which resulted in the death of Renee Good.
Federal and state officials have clashed over investigative authority and public safety measures, with Trump administration officials labeling Good a domestic terrorist, while Democrats argued ICE should not have been operating in the city.
Senators and local leaders in sanctuary jurisdictions have signaled their intent to challenge the funding freeze in court.
Chicago Mayor Brandon Johnson posted on social media, “See you in court @realDonaldTrump,” echoing similar statements from officials in New York.
Legal battles are expected to determine whether the federal government can enforce the suspension.
