Overview

• California Attorney General Rob Bonta and a multistate coalition filed in U.S. District Court in Rhode Island for a temporary restraining order to rescind FEMA’s award notices and halt disbursement.
• California says its allocation dropped to $110 million from an expected $165 million, while Illinois faces a 69% cut and New York a 79% cut, with notices citing an adjustment per a DHS directive.
• The suit alleges the redistribution exceeds FEMA’s statutory authority, is arbitrary and capricious under the Administrative Procedure Act, and unlawfully targets states over immigration policies.
• Plaintiffs point to statements and a memo attributed to DHS Secretary Kristi Noem advocating withholding funds from sanctuary jurisdictions, while some states reportedly received increases exceeding 100%.
• With fiscal year 2025 ending Tuesday and funds not yet distributed, the states warn key programs for cybersecurity, terrorism prevention, and first‑responder equipment could be compromised without immediate relief.