Federal Funding for Infrastructure Projects Tied to Immigration Enforcement Policies Faces Legal Challenge

Twenty Democratic state attorneys general are taking issue with new executive directives that require states to cooperate with federal immigration policies in order to receive key federal grants and aid for infrastructure projects. The attorneys general, led by New Mexico's Raúl Torrez, filed two federal lawsuits in U.S. District Court in Rhode Island against the U.S. Department of Homeland Security (DHS) and the U.S. Department of Transportation (DOT). The lawsuits argue that the directives tie federal funding to states' cooperation with federal immigration policies, violating constitutional protections for separation of powers and the spending clauses.

The attorneys general contend that this "grant funding hostage scheme" is arbitrary and capricious, and forces states to choose between responding to natural disasters and security threats, and investigating and prosecuting crimes. They also argue that the directives ignore the principle that agencies in the Executive Branch cannot act contrary to the authority conferred on them by Congress, and that the federal government cannot use the spending power to coerce states into adopting its preferred policies.

The lawsuits target the U.S. Transportation Secretary Sean Duffy's directive issued in April, which ties federal infrastructure grants to compliance with federal diversity and immigration policies. The directive fails to provide any statutory or legal explanation for why transportation funding relates to immigration enforcement. The attorneys general argue that this will jeopardize more than $628 million in federal funding in Rhode Island, and billions of dollars more across the country.

Key Takeaways:

Twenty Democratic state attorneys general, including New Mexico's Raúl Torrez, are suing the U.S. Department of Homeland Security and the U.S. Department of Transportation over new executive directives that tie federal funding to states' cooperation with federal immigration policies.
The lawsuits argue that the directives violate constitutional protections for separation of powers and the spending clauses, and force states to choose between responding to natural disasters and security threats, and investigating and prosecuting crimes.
The directives will jeopardize more than $628 million in federal funding in Rhode Island, and billions of dollars more across the country, the attorneys general argue.
The lawsuits target the U.S. Transportation Secretary Sean Duffy's directive issued in April, which ties federal infrastructure grants to compliance with federal diversity and immigration policies.
The directive fails to provide any statutory or legal explanation for why transportation funding relates to immigration enforcement.
The attorneys general contend that this is an example of "creeping authoritarianism" and a threat to the Constitution, and they hope to preserve funding and policy protections for essential programs and projects.

Statistics:

$628 million: The amount of federal funding in Rhode Island that is jeopardized by the directives, according to the lawsuit.
$3 billion: The amount of FEMA money that states receive each year, according to the lawsuit.
20: The number of states that have received more than $45 million in FEMA grants in 2024 alone, according to the lawsuit.
19: The number of states that have already joined Rhode Island in granting driving privileges to undocumented residents.
20: The number of federal lawsuits filed by Democratic state attorneys general against the Trump administration.

Sources:

(https://rhodeislandcurrent.com/wp-content/uploads/2025/05/Illinois-v.-FEMA-Filed-Complaint-1.pdf)
(https://rhodeislandcurrent.com/wp-content/uploads/2025/05/State-of-California-et-al.-v.-USDOT-et-al.-Complaint.pdf)
(https://rhodeislandcurrent.com/wp-content/uploads/2025/05/2025_0418_fy2025_dhs_terms_and_conditions_version_3.pdf)
(https://rhodeislandcurrent.com/wp-content/uploads/2025/05/Follow-the-Law-Letter-to-Applicants-4.24.25.pdf)