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Federal judge halts Trump’s plan to cut funding for sanctuary states that refuse to cooperate

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A federal judge in Rhode Island issued a preliminary injunction on Thursday, blocking the Trump administration from denying federal transportation funds to states that do not cooperate with immigration enforcement authorities.
Twenty Democratic-led states brought a lawsuit against President Donald Trump’s administration, challenging a new Department of Transportation (DOT) policy of withholding or terminating federal funding to any state or local government that does not comply with immigration-enforcement policies.
During Trump’s first day in office, he issued a sweeping executive order that would deny federal funds to «so-called sanctuary jurisdictions.»
U.S. District Court Judge John J. McConnell Jr. issued the preliminary injunction against the Trump administration’s efforts on Thursday, saying it is «unconstitutional and/or unlawful» because it violates the Administrative Procedure Act.
ICE-AVERSE STATES WON’T GET ‘ONE RED CENT’ FROM FEDS TO REBUILD INFRASTRUCTURE, SECRETARY DUFFY WARNS
U.S. Immigration and Customs Enforcement (ICE), agents detain an immigrant in Los Angeles, California. (Getty Images)
McConnell also said the Trump administration’s action is ultra vires – or done beyond one’s legal authority – and exceeds Congress’s powers under the Spending Clause.
Under the preliminary injunction, the Trump administration is «prohibited from implementing or enforcing the Immigration Enforcement Condition as set forth in the Duffy Directive,» McConnell wrote.
He also said the defendants are «prohibited from withholding or terminating federal funding based on the Immigration Enforcement Condition as set forth in the Duffy Directive absent specific statutory authorization.»
FEDERAL JUDGE PARTIALLY BLOCKS TRUMP’S EFFORT TO DENY FUNDING TO PRO-DEI PUBLIC SCHOOLS

Secretary of Transportation Sean Duffy testifies during a hearing before the House Appropriations Committee in the Rayburn House Office Building on May 14, 2025, in Washington, DC. Duffy testified before the Subcommittee on Transportation, and Housing and Urban Development, and Related Agencies on the Transportation Department’s proposed 2026 fiscal year budget. (Samuel Corum/Getty Images)
«Defendants are prohibited from taking adverse action against any state entity or local jurisdiction, including barring it from receiving or making it ineligible for federal funding, based on the Immigration Enforcement Condition, absent specific statutory authorization,» the ruling continued. «The Court forbids and enjoins any attempt to implement the Immigration Enforcement Condition, and any actions by the Defendants to implement or enforce the Immigration Enforcement Condition.»
Fox News Digital has reached out to the White House for comment on the matter.
Transportation Secretary Sean Duffy, even this week, has warned «rogue state actors» who do not cooperate with U.S. Immigration and Customs Enforcement (ICE) and federal immigration enforcement that they may be on the hook to clean up their own mess.
FEDERAL JUDGE DECLARES TRUMP ADMIN BLOCKING FEDERAL MONEY FROM SANCTUARY CITIES UNCONSTITUTIONAL

President Donald Trump (Bill Pugliano via Getty Images)
Most recently, Duffy directed his comments toward California officials who have distanced themselves from immigration enforcement while riots and protests continue to break out in places like Los Angeles.
Duffy has suggested political leaders work better with the Trump administration.
«The USDOT will not fund rogue state actors who refuse to cooperate with federal immigration enforcement,» Duffy said Monday. «And to cities that stand by while rioters destroy transportation infrastructure — don’t expect a red cent from DOT, either.»
Duffy said in April that federal grants come with the obligation to adhere to federal law.
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«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,» he said.
Fox News Digital’s Charles Creitz contributed to this report.
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Dem senator accuses top Trump official of being responsible for ‘hundreds of thousands of children dying’

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Sen. Jeff Merkley, D-Ore., accused Trump Office of Management and Budget (OMB) Director Russell Vought of being responsible for the deaths of hundreds of thousands of children due to the budget cuts he has overseen under the Trump administration.
Vought faced a high-intensity grilling from both Democratic and GOP senators in the Senate Appropriations Committee on Wednesday over a package of proposed budget cuts – called a rescissions package – the administration sent to the legislative branch earlier this month.
Democratic committee members, as well as some Republicans, appeared very frustrated with the administration over the proposed cuts. At one point during the hearing, several protesters stood and began shouting, causing the proceedings to briefly come to a halt. It was unclear what the protesters were objecting to.
While Vought claimed that the administration’s cuts to USAID and PEPFAR have not halted lifesaving treatment, Merkley asserted that the claim is a «huge deception.»
TRUMP’S PLAN TO SLASH ‘WOKE’ FOREIGN AID, NPR FUNDS CLEARS HOUSE AS SENATE BATTLE LOOMS
In this Jan. 24, 2019 file photo, Sen. Jeff Merkley, D-Ore., speaks during the U.S. Conference of Mayors meeting in Washington. Right: President Donald Trump’s Office of Management and Budget Director Russell Vought is sworn in during the Senate Banking Committee nomination hearing in the Dirksen Senate Building on Jan. 22, 2025, in Washington, D.C. (Kayla Bartkowski/Getty Images and AP Photo/Jose Luis Magana, File)
According to Merkley, a Boston University School of Public Health study claims that some 246,000 children have died due to the various foreign aid programs cut by DOGE.
«We are talking a quarter million children because of your irresponsible shutdown of programs that Congress had fully authorized, and you unconstitutionally shut down in partnership with Elon Musk and the Secretary of State,» fired Merkley. «How do you feel about being responsible for hundreds of thousands of children dying because of your sudden interruption in these key programs?»
Vought soundly rejected the assertion, saying that every administration «has the ability to do a programmatic review when they come into office» and to make changes based on «new spending priorities.»
Before he could finish, Merkley cut Vought off, saying, «I find your response both ignorant and callous.»
MARJORIE TAYLOR GREENE LAUNCHES PROBE INTO PLANNED PARENTHOOD’S USE OF TAXPAYER FUNDS

An American flag and USAID flag fly outside the USAID building in Washington, D.C., U.S., Feb.1, 2025. (REUTERS/Annabelle Gordon)
«You chose to shut down programs in the middle that have resulted in hundreds of thousands of children dying in the last few months. I find that abhorrent, and few Americans have ever had such a devastating and disastrously impact,» Merkley exclaimed.
Sen. Patty Murray, D-Wash., also confronted Vought, accusing the administration of trying to illegally maneuver around Congress to make its cuts, which she said undermine American interests abroad.
«Will you tell us specifically where, the Philippines, Pacific islands, Jordan, you’re planning to undermine American interests?» she asked, to which Vought responded: «Of course not. We’ve been very clear in all the administration’s priorities that all of our commitments with regard to Jordan and Egypt are maintained.»
Before Vought could finish, Murray cut in again, saying, «I assume you’re unwilling to share which humanitarian crisis this administration plans to walk away with, which is what we would be voting on, and that is critical information.»
WATCH: RFK JR. REBUKES DEM SENATOR FOR PLAYING POLITICS WITH CANCER-STRICKEN CONSTITUENT: ‘YOU DON’T CARE’

Sen. Patty Murray, D-Wash., was among Appropriations Committee Democrats who challenged Vought on DOGE cuts and their impact. (Jacquelyn Martin)
But it wasn’t just Democrats taking Vought to task during the hearing.
Sen. Lisa Murkowski, R-Alaska, also voiced frustration over the Trump administration’s DOGE cuts, taking particular issue with cuts to public broadcasting, which she said plays an important emergency services role in her state.
Sen. Mitch McConnell, R-Ky., also voiced objections to the cuts to foreign aid, which he said were opportunities to project American soft power.
«Instead of creating efficiency, you’ve created vacuums for adversaries like China to fill responsible investments in soft power, prevent conflict, preserve American influence, and save countless of lives at the same time,» said McConnell.
For his part, Vought said that «it is critical that this body and the American people writ large, understand that many foreign aid programs use benevolent-sounding titles to hide truly appalling activity that is not in line with American interests.»
FOUR PLEAD GUILTY IN MASSIVE BRIBERY SCHEME AT AGENCY DEMOCRATS FOUGHT TO PROTECT FROM DOGE

OMB Director Russell Vought, shown here from a Jan. 2025 confirmation hearing, was subject to some critical questions by Republican Sens. Murkowski and McConnell at an Appropriations Committee hearing held Wednesday, June 26. (Kayla Bartkowski/Getty Images)
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Vought said the «entire federal government must be responsible with each taxpayer dollar that comes to Washington.»
«The American people voted for change. President Trump stands ready to put our fiscal house back in order and put the American taxpayer first,» he said, adding, «A vote for rescissions is a vote to show that the United States Senate is serious about getting our fiscal house in order. I hope that the Senate will join us in that fight.»
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‘Presidential incapacity’: Senate Republican seeks paper trail of Biden’s autopen use

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FIRST ON FOX: A Senate Republican wants to build a paper trail of former President Joe Biden’s autopen usage with the end goal of calling more hearings, passing legislation or amending the Constitution to best address «a mentally incapacitated president.»
Sen. Eric Schmitt, chair of the Senate Judiciary Subcommittee on the Constitution, is requesting special access under the Presidential Records Act to a trove of Biden-era documents and memos that chronicle his usage of an autopen.
In a letter to Secretary of State and Acting National Archivist Marco Rubio exclusively obtained by Fox News, Schmitt argued that creating a paper trail of key directives made toward the end of his presidency would help in «deciding which legislative remedy is most appropriate.»
TOP BIDEN AIDE ADMITS TO CONGRESS SHE DIRECTED AUTOPEN SIGNATURES WITHOUT KNOWING WHO GAVE FINAL APPROVAL
Neera Tanden, the former director of Biden’s Domestic Policy Council, testified for more than five hours Tuesday behind closed doors as part of House Republicans’ investigation into the former president’s mental acuity and his use of an automatic signature tool. (Getty Images)
«In particular, the increased use of the autopen to sign pardons, executive orders, and other documents as his Presidency progressed became a poignant symbol of President Biden’s mental decline and has created questions about the validity of those orders and pardons if President Biden did not direct the use of the autopen,» he wrote.
Schmitt requested access to a slew of documents, including memos about procedures for usage of the autopen, who was granted authority to use the autopen and emails from staff authorizing or requesting authorization for autopen usage.
SENATE HEARING ON WHO WAS ‘REALLY RUNNING’ BIDEN WHITE HOUSE KICKS OFF WEDNESDAY

Sen. Eric Schmitt, R-Mo., arrives for a Senate Judiciary Committee hearing in Dirksen building Tuesday, June 17, 2025. (Getty Images)
He also requested access to all White House records after Nov. 1, 2024, that refer or relate to presidential pardons; that prioritize briefing books, memos and decision memos for pardons; and, eventually, access to all White House records after Nov. 1.
«With that information, the subcommittee will be better positioned to ensure that any potential proposed amendment will be sufficiently comprehensive so as to address any plausible contingency concerning a mentally incapacitated President,» Schmitt wrote.
«It would be challenging enough to amend the Constitution once — much less more than once if it then subsequently turned out not all contingencies around presidential incapacity were adequately considered.»
Schmitt’s letter comes after the Senate Judiciary Committee’s hearing on Biden’s alleged mental decline while in office and how the autopen could have played a central role in his inner circle’s alleged attempt to skirt the Constitution while continuing to carry out the duties of the office.
EX-WHITE HOUSE OFFICIALS TO TESTIFY ON WHO ‘REALLY RAN THE COUNTRY’ DURING BIDEN ERA

President Donald Trump speaks with reporters while flying aboard Air Force One en route from Calgary, Canada, to Joint Base Andrews, Maryland, late Monday, June 16, 2025. (AP Photo/Mark Schiefelbein)
It also explicitly mentions the closed-door, transcribed hearing with Biden’s former director of the Domestic Policy Council, Neera Tanden, conducted by the House Oversight Committee this week.
A source told Fox News Digital that during the transcribed interview, which lasted five hours, Tanden testified she had «minimal interaction with President Biden» in her role as staff secretary and that to obtain autopen signatures, she would send decision memos to members of Biden’s inner circle.
She said during the interview she was not aware of what actions or approvals happened between the time the memo was sent out and returned with approval.
However, Tanden’s opening statement, shared with Fox News Digital by her lawyer, Michael Bromwich, said that, as staff secretary, she was responsible for «handling the flow of documents to and from the President» and that she was authorized to direct that autopen signatures be «affixed to certain categories of documents.»
«We had a system for authorizing the use of the autopen that I inherited from prior Administrations,» Tanden said. «We employed that system throughout my tenure as Staff Secretary.»
She was later named director of Biden’s Domestic Policy Council and said she was no longer responsible for the flow of documents and was no longer involved in decisions related to the autopen.
«I would note that much of the public discussion on the subject matter of this hearing has conflated two very different issues: first, the president’s age and second, whether President Bident was in command as President,» she said. «I had no experience in the White House that would provide any reason to question his command as President. He was in charge.»
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Schmitt requested that access to the swathe of memos and communications be granted no later than July 16.
«It is important for this subcommittee to have a clear picture of President Biden’s decision-making capacity at the end of his presidency and to know the extent to which members of his inner circle possibly usurped the President’s decision-making authority,» he wrote.
Fox News Digital’s Liz Elkind contributed to this report.
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