Federal judge halts Trump’s plan to deny transportation funds to states refusing immigration enforcement, citing constitutional violations.

Judge Issues Injunction on Federal Transportation Funding Policy

A federal judge in Rhode Island has issued a preliminary injunction, stopping the Trump administration from cutting federal transportation funding to states that do not cooperate with federal immigration enforcement authorities. The decision, handed down Thursday by U.S. District Court Judge John J. McConnell Jr., represents a significant setback for President Donald Trump’s efforts to pressure so-called sanctuary states through financial penalties.

The lawsuit was brought by twenty Democratic-led states, challenging a new Department of Transportation (DOT) directive that would withhold or terminate federal funds from any state or local government that failed to comply with federal immigration policies. The disputed policy followed a sweeping executive order by President Trump, issued on his first day in office, aiming to deny federal funding to jurisdictions designated as sanctuary areas.

In his ruling, Judge McConnell found the administration’s action "unconstitutional and/or unlawful" under the Administrative Procedure Act. He further ruled that the Trump administration exceeded its legal authority, noting the policy was "ultra vires"—taken beyond the administration’s powers under the Spending Clause of the Constitution. "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 court wrote.

The court’s decision forbids the Trump administration from implementing or enforcing the Immigration Enforcement Condition as set forth in the so-called Duffy Directive, unless there is specific statutory authorization from Congress. "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," Judge McConnell ordered.

Trump Administration Responds Amid Ongoing Immigration Debate

Transportation Secretary Sean Duffy, a key figure in shaping the policy, has repeatedly warned states that do not cooperate with U.S. Immigration and Customs Enforcement (ICE) and other federal immigration authorities that they could lose federal support. Duffy directed pointed criticism at California officials, accusing them of neglecting cooperation as protests and riots persist in cities like Los Angeles.

“The USDOT will not fund rogue state actors who refuse to cooperate with federal immigration enforcement,” Duffy stated earlier this week. “And to cities that stand by while rioters destroy transportation infrastructure — don’t expect a red cent from DOT, either.” He also emphasized that federal grants are contingent on adherence to federal law, adding, “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.”

The White House did not immediately respond to requests for comment on the ruling. For now, the preliminary injunction preserves federal transportation funding for states and localities that have enacted sanctuary policies, as the legal battle over immigration enforcement and federal authority continues to unfold.