Power Grab/Fire anyone who can stop him
Trump vows to halt payments to states with sanctuary cities, and OMB moves to cut $602 million from CDC and $943 million from DOT
A federal judge blocked the CDC cuts, finding OMB’s targeting likely violated the Administrative Procedure Act. The government appealed on September 25.
What happened
On January 13, 2026, Trump said that from February 1 the federal government would make no payments to sanctuary cities or to states containing them. The pledge reached past the cities to the states they sit in.
OMB gathered data on federal funds to 14 listed states, then confirmed on February 5 that it had directed CDC to rescind $602 million and DOT $943 million in grants to California, Colorado, Illinois and Minnesota. The four states sued on February 11.
Judge Manish Shah blocked the CDC cuts with a restraining order on February 12 and a preliminary injunction on March 12, finding OMB’s targeting likely violated the Administrative Procedure Act. The government appealed to the Federal Circuit on September 25.
Who benefited
The administration gains leverage over four states’ federal funding, tied to the immigration policies of cities inside them, if the cuts stand. The injunction blocks the CDC cuts while the appeal is pending. The injunction blocks the CDC cuts while the appeal is pending, so the leverage exists only if the Federal Circuit rules for the government.
Who wanted something
Trump wanted states that contain sanctuary cities to stop receiving federal payments, not only the cities themselves. OMB’s data-gathering on 14 states and its February 5 rescission directives carried that out. OMB’s data-gathering on 14 states and its February 5 directives to CDC and DOT carried the pledge out, starting with four of them.
Who lost out
California, Colorado, Illinois and Minnesota faced the loss of $602 million in CDC grants and $943 million in DOT grants. Their residents are the ones who would have lost what those programs fund. The injunction covers the CDC cuts.
Why it matters
A court stopped the CDC cuts, finding OMB’s targeting likely violated the Administrative Procedure Act, and the government is appealing. The pledge covered 14 states, and the directives reached four. The case now sits at the Federal Circuit.
Sources U.S. District Court, N.D. Ill. (primary)U.S. Court of Appeals for the Federal Circuit (via Georgetown Health Care Litigation Tracker) (primary)ReutersNPR