Judge Blocks Trump From Withholding Funds From States

Jun. 20, 2025, 4:27 pm ET

Instant Insight

30-Second Take

  • A federal judge has blocked the Trump administration from withholding transportation funds from states that refuse to cooperate with immigration enforcement.
  • Twenty states sued after receiving threats from Transportation Secretary Sean Duffy to cut off funding.
  • The judge ruled that the states would face irreparable harm if forced to comply with the administration’s immigration conditions.

+ Dive Deeper

Quick Brief

2-Minute Digest

Essential Context

On June 20, 2025, U.S. District Judge John McConnell Jr. issued a preliminary injunction against the Trump administration, preventing it from withholding billions of dollars in transportation funds from states that do not cooperate with federal immigration authorities. This decision comes after twenty states filed a lawsuit in response to letters from the Department of Transportation threatening to cut off funding if they did not comply with President Trump’s immigration agenda.

Core Players

  • U.S. District Judge John McConnell Jr. – Chief judge for the federal district of Rhode Island
  • Transportation Secretary Sean Duffy – Issued the threat to cut off transportation funding
  • President Trump – President whose immigration agenda is at the center of the dispute
  • Twenty plaintiff states – Sued the Trump administration over the funding threat

Key Numbers

  • 20 – Number of states that sued the Trump administration
  • Billions – Amount of transportation funds at stake
  • April 24, 2025 – Date when states received letters from the Department of Transportation

+ Full Analysis

Full Depth

Complete Coverage

The Catalyst

The controversy began when Transportation Secretary Sean Duffy sent letters to states on April 24, 2025, warning that they would lose federal transportation funding if they did not cooperate with federal immigration authorities. This move was part of a broader effort by the Trump administration to enforce its immigration policies.

The states argued that this condition was unlawful and unconstitutional, as it forced them to relinquish their sovereign right to decide how to use their own law enforcement resources.

Inside Forces

Judge McConnell’s ruling emphasized that the states would suffer irreparable harm if they were forced to comply. This harm includes losing billions of dollars in federal funding, damaging the trust between local law enforcement and immigrant communities, and having to scale back or cancel ongoing transportation projects.

The judge also noted that the policy was “arbitrary and capricious in its scope and lacks specificity in how the States are to cooperate on immigration enforcement in exchange for Congressionally appropriated transportation dollars.”[2]

Power Dynamics

The Trump administration’s attempt to tie transportation funding to immigration cooperation reflects a broader power struggle between the federal government and states over immigration policy. The administration has been pushing back against “sanctuary” jurisdictions that refuse to cooperate fully with federal immigration authorities.

Judge McConnell’s decision underscores that Congress did not authorize the Secretary of Transportation to impose such conditions on federal transportation funds.[2]

Outside Impact

The ruling has significant implications for state budgets and infrastructure projects. States rely heavily on federal transportation funds for maintaining roads, airports, and other critical infrastructure. Without these funds, states would face severe financial strain and potential delays in essential projects.

The decision also highlights the ongoing tension between federal and state authorities over immigration policy, which is likely to continue as a contentious issue in American politics.

Future Forces

The lawsuit is not fully resolved, and the preliminary injunction will remain in place until a final decision is made. This means that states will continue to receive their allocated transportation funds without the condition of cooperating with federal immigration authorities.

Looking ahead, the outcome of this lawsuit could set a precedent for future disputes between the federal government and states over the use of federal funds as leverage for policy compliance.

Data Points

  • April 24, 2025 – Date states received letters from the Department of Transportation
  • June 20, 2025 – Date of Judge McConnell’s ruling
  • Billions – Amount of federal transportation funds at stake
  • 20 – Number of states that sued the Trump administration

The ruling marks a significant victory for states resisting federal pressure to comply with immigration policies, and it underscores the limits of federal authority in using funding as a tool for policy enforcement. As the legal battle continues, it will be crucial to watch how this decision influences future interactions between state and federal governments.