Tuesday, January 20, 2026

Federal Grant Defunding 1-20-26

Starting February 1, 2026, President Trump has threatened to cut off "any payments" to sanctuary cities and states, though the specific types of federal grants aren't detailed, it would generally target funding tied to immigration cooperation, potentially including broad federal aid for states and localities that don't comply with federal immigration enforcement, potentially affecting public safety, social service, or infrastructure funds, but legal challenges are expected as past attempts to withhold all funding were deemed illegal.  

Key Details of the Threat

Timing: February 1, 2026.

Reason: To penalize jurisdictions that adopt "sanctuary" policies, which limit local law enforcement's cooperation with federal immigration agents (ICE).

Scope: President Trump stated he would stop "any payments," suggesting a broad range of funding, but without specifying which federal grants. 

Potential Impacts & Challenges

Types of Funds: While not specified, this could involve federal funds for law enforcement, public health, education, or infrastructure, depending on the administration's actions.

Legality: Previous attempts to withhold broad federal funding have faced legal challenges, with courts ruling such actions potentially illegal, so this move is expected to face significant legal battles from states and cities. 

In essence, the threat is a broad withdrawal of federal funds, but the exact grants and legal outcomes remain uncertain as of early 2026. 

Starting February 1, 2026, the Trump administration intends to halt all federal payments to "sanctuary" cities and the states that house them. While the administration has not provided an exhaustive list of every specific grant, official announcements and previous actions identify several high-priority programs and broad funding categories targeted for suspension. 

Targeted Federal Programs and Categories

The administration has specifically identified or signaled cuts to the following programs and sectors: 

Health and Human Services (HHS) Programs: The Department of Health and Human Services has already announced it will withhold funds for several major programs in five Democratic-led states:

Child Care and Development Fund (CCDF): Subsidies for low-income families' childcare.

Temporary Assistance for Needy Families (TANF): Direct financial assistance and support services.

Social Services Block Grant (SSBG): Funding for a variety of social services, including elder care and child welfare.

Law Enforcement and Public Safety:

Justice Department Grants: Historically, this includes the Edward Byrne Memorial Justice Assistance Grant (JAG) program, though courts have frequently protected these funds in the past.

DHS/FEMA Funding: Grants for emergency management and disaster preparedness.

Broad Infrastructure and Services: Threats have been directed at billions of dollars allocated for:

Transportation: Department of Transportation (DOT) funding for state and local projects.

Education: Federal aid for local school districts.

Human Services: Funding for child support and general human services. 

Legal and Practical Status

The legality of these cuts is currently a major point of contention:

Unconstitutionality Claims: State attorneys general and legal experts argue the administration cannot unilaterally withhold funds appropriated by Congress to coerce local immigration policy.

Ongoing Injunctions: As of January 2026, federal judges have already blocked earlier attempts by the administration to withhold funding from over 30 jurisdictions, including Los Angeles, Chicago, and Boston.

Broad vs. Specific: Legal experts note the administration may be shifting strategy to target grants with "loose rules" where executive discretion is higher to bypass some court protections. 

President Trump stated the upcoming cuts will be "significant" but did not elaborate on the full list of impacted accounts beyond his initial executive orders. Local leaders in states like California, New York, and Illinois have already prepared to challenge the February 1 deadline in court. 

https://www.google.com/search?q=what+federal+grants+will+sanctuary+states+and+cities+lose+in+february+2026

Norb Leahy, Dunwoody GA Tea Party Leader

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