Overview
- President Donald Trump announced the federal government will stop making payments to jurisdictions labeled as sanctuary starting Feb. 1, without detailing which funds would be affected.
- The Justice Department currently identifies 11 states and the District of Columbia, along with 18 cities and several counties, as sanctuary jurisdictions.
- A federal judge, Arun Subramanian, temporarily blocked the administration on Jan. 9 from halting childcare‑related subsidies in five states after HHS signaled withholdings tied to fraud concerns.
- Trump said nearly 8,000 Small Business Administration loans in Minnesota have been suspended for suspected fraud, noting prosecutions there, and he tied the broader cutoff to combating abuse.
- States and cities, including California, Colorado, Illinois, Minnesota and New York, have mounted or are preparing legal challenges, as Trump also proposes proof‑of‑attendance rules for childcare funding and a DOJ fraud strike force.