Power Grab/Fire anyone who can stop him
Trump says he will stop federal payments on February 1 to sanctuary cities and to any state that contains one
The January 2026 threat extends earlier ones against localities to whole states. Courts had already blocked such conditions twice, and no stoppage has been reported.
What happened
On January 13, 2026, in a speech to the Detroit Economic Club, Trump said that starting February 1 “we’re not making any payments to sanctuary cities or states having sanctuary cities.” He said such places protect criminals and breed fraud and crime. Asked what funding would be affected, he said: “You’ll see. It’ll be significant.”
The Justice Department had published a list of about three dozen sanctuary states, cities and counties in 2025. It included California, Connecticut and New York, and counties such as Cook County, Illinois and Baltimore County, Maryland. “Sanctuary” is not a legal term. It describes jurisdictions that limit cooperation with ICE.
Judge William Orrick’s April and August 2025 injunctions already barred the government from withholding, freezing or conditioning federal funds to dozens of sanctuary jurisdictions. Courts had also struck down a 2017 attempt. No reporting was found of payments actually stopped to a state after February 1, 2026. The Justice Department instead sued sanctuary states, including Maryland in July 2026.
Who benefited
The White House gained a lever over entire states, not just cities, in its effort to force local police into immigration enforcement. Republican-led jurisdictions would be spared. The deportation apparatus stood to gain cooperation from governors trying to protect unrelated federal funding.
Who wanted something
Trump announced the policy himself. Border czar Tom Homan and Stephen Miller had long sought to punish jurisdictions that refuse ICE detainers. Attorney General Pam Bondi’s department compiled the target list, and Russell Vought’s Office of Management and Budget held the tools to pause disbursements.
Who lost out
Residents of the listed jurisdictions, and of states such as California and New York, saw federal money for health care, nutrition, transit and disaster aid put at risk over a dispute about local policing. The threat came alongside a USDA demand for SNAP recipient data and a CMS move to withhold $515 million a quarter from Minnesota Medicaid programs.
Why it matters
Courts have rejected conditioning federal payments on immigration policy twice. Trump announced the cut again with no specifics, which puts pressure on states to comply before any court can rule. It extends the coercion from cities to the states that contain them.
Sources NBC News / Associated PressAssociated Press (via ABC7)