Republican lawmakers propose cutting federal housing grants to sanctuary cities that refuse to comply with Trump’s immigration policies.

New Bill Seeks to Tie Housing Funds to Immigration Compliance

Congressional Republicans have introduced legislation aimed at stripping sanctuary cities of federal housing grants if they defy Trump administration immigration enforcement. The bill, sponsored by Sen. Bill Hagerty of Tennessee and Rep. Ralph Norman of South Carolina, directly targets cities such as Los Angeles, which have resisted federal cooperation with U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS).

Sen. Hagerty emphasized the administration’s stance, stating, “Cities that encourage illegal immigration shouldn’t be rewarded with federal housing subsidies.” The measure focuses on the longstanding community development block grant program managed by the Department of Housing and Urban Development, which distributes over $3 billion annually to state and local governments to support housing and urban development projects.

The bill outlines that any jurisdiction with laws or policies that impede the identification or reporting of the immigration status of individuals—or block compliance with DHS requests—would lose eligibility for federal housing funds. The effort comes as President Donald Trump has renewed his push to crack down on sanctuary policies and threatened to revoke funding from cities that do not align with his administration’s immigration priorities.

Rep. Norman stressed the link between compliance and federal funding: “It’s simple: if you’re going to ignore federal immigration law, don’t expect to get a dime of federal tax dollars.” He argued that sanctuary cities are putting political interests above public safety and that taxpayer money should not support localities that refuse to enforce federal immigration laws.

Los Angeles and other cities have become focal points in the national debate, as ongoing protests and unrest continue in response to ICE raids and federal actions targeting undocumented immigrants. The proposed legislation would add financial consequences for local governments choosing to maintain sanctuary policies.

Trump Administration Pursues Broad Cuts to Housing Programs

The bill aligns with the Trump administration’s broader budget goals, including a recent proposal to eliminate federal community development block grants entirely. In his budget submission to Congress, the president argued that such programs are better managed at the state and local level and proposed roughly $5 billion in cuts to related initiatives.

Supporters of the new legislation believe it sends a clear message about the consequences of disregarding federal law. Critics, however, warn that revoking housing funds could undermine efforts to provide affordable housing and improve living conditions in cities where vulnerable populations are most at risk.

As the debate over sanctuary cities and immigration policy continues, the proposed bill is expected to reignite discussions on the balance between federal authority, local autonomy, and the use of taxpayer resources. Its progress through Congress will be closely watched by both supporters and opponents of sanctuary city policies.