DHS Cannot Force States to Share Immigration Data to Receive Disaster Aid, Court Says

A federal judge ruled Wednesday that the Department of Homeland Security cannot condition disaster aid on states' cooperation with immigration enforcement, calling the policy "coercive" and "unconstitutional."

U.S. District Judge William Smith of Rhode Island sided with 20 states and Washington D.C., which sued earlier this year after DHS revised grant terms to require recipients to share immigration status data with Immigration and Customs Enforcement and allow federal access to detainees.

The case centered on funds administered through the Federal Emergency Management Agency, which supports disaster preparedness, fire safety, and emergency relief programs.

In a 45-page decision, Smith wrote that the conditions imposed by DHS were "arbitrary and capricious" and "not reasonably related to the purposes" of the grants, as Axios reports. He noted that the coercion was heightened because the funds at stake involved "essential public safety responsibilities rather than optional or peripheral programs."

"The Court declares that the contested conditions are both arbitrary and capricious ... as such, the contested conditions are vacated," Smith wrote. The ruling applies nationwide, even though the Supreme Court earlier this year restricted judges' power to issue broad injunctions. Smith said the Administrative Procedure Act still requires courts to "set aside" unlawful agency actions.

The lawsuit was filed in April by a coalition led by Illinois and joined by California, New York, and other states that have laws limiting cooperation between local police and ICE. The states argued that withholding FEMA funding could cost billions of dollars and jeopardize disaster readiness.

New York Attorney General Letitia James said in a statement reported by CBS News that the ruling reaffirmed that "the federal government cannot prioritize its cruel immigration agenda over Americans' safety."

DHS officials defended the policy as consistent with the agency's mission to secure the homeland. Assistant Secretary Tricia McLaughlin said states that "prevent us from arresting criminal illegal aliens should not receive federal funding," adding that the administration remained committed to "restoring the rule of law."

The decision is the latest legal setback for the Trump administration's broader effort to cut funding to so-called sanctuary jurisdictions. Similar attempts by the Department of Justice and the Department of Housing and Urban Development have also been challenged in court.