President Donald Trump announced a sweeping move that puts sanctuary cities on notice. Speaking to the Detroit Economic Club on Jan. 13, 2026, Trump said the federal government will stop sending money to cities and states that refuse to cooperate with federal immigration enforcement. The policy is set to take effect on February 1 and is aimed directly at places that, in his view, are protecting criminals instead of protecting American citizens.
Trump made it clear this is not a warning. It is a cutoff.
“Starting February 1, we’re not making any payments to sanctuary cities,” Trump said, adding that these jurisdictions “do everything possible to protect criminals at the expense of American citizens” and that this “breeds fraud and crime.”
This move is part of Trump’s larger effort to crack down on illegal immigration and to carry out what he has called the largest deportation operation in American history.
Sanctuary cities are places where local governments limit cooperation with federal immigration authorities, including Immigration and Customs Enforcement. The administration says these jurisdictions interfere with federal law enforcement and block the sharing of information about immigration status, which is required under federal law.
Attorney General Pam Bondi has defined a sanctuary city as a state or local government that refuses to comply with federal law, including 8 U.S. Code § 1373, which bars governments from restricting the sharing of immigration status information with federal authorities.
Trump tied the decision directly to law enforcement and public safety.
“They do everything possible to protect criminals at the expense of American citizens,” he said. “It breeds fraud and crime and all the other problems that come.”
What Funding is Affected
The federal money at stake includes major social service and assistance programs that flow to many Democratic led states and cities that have adopted sanctuary policies.
According to the administration, some of the programs already being targeted or reviewed include:
— The Child Care and Development Fund
— Temporary Assistance for Needy Families
— The Social Services Block Grant
The Department of Health and Human Services said it is withholding funds in five Democratic led states because of concerns about fraud and misuse of federal dollars.
HHS Deputy Secretary Jim O’Neill said families who depend on these programs “deserve confidence that these resources are used lawfully and for their intended purpose.”
Trump has also said that payments tied to suspected fraud in Minnesota have already been suspended, accusing state leaders of allowing widespread abuse of federal programs.
How Much Money Is at Stake
While the Trump administration has not released a single total dollar amount tied specifically to sanctuary cities, the scale of the funding involved is enormous.
Trump recently cut $10 billion in child care funds to blue states earlier this month. He also canceled nearly $8 billion in funding to states that voted for Kamala Harris in the 2024 election. Those actions were later blocked by judges, but they show how much federal money is involved when these funding battles occur.
The sanctuary city freeze could affect dozens of major cities and 11 states, including California, Illinois, Minnesota and New York, as well as Washington, D.C. All of them receive billions in federal funding every year across social services, law enforcement grants, and other programs.
Trump says sanctuary cities are actively working against federal law enforcement and are helping criminals avoid deportation. From Trump’s point of view, cities and states that defy federal immigration law should not receive federal taxpayer money.
His argument is that these cities refuse to honor ICE detainers, block cooperation with federal agents, and prevent the sharing of basic immigration information. That, he says, allows dangerous people to stay in communities and creates a climate of fraud and lawlessness.
“So we’re not making any payment to anybody that supports sanctuary,” he said.
Sanctuary City Leaders Respond
Leaders in sanctuary cities quickly pushed back.
Chicago Mayor Brandon Johnson posted on X, “See you in court @realDonaldTrump,” signaling that legal challenges are coming if the funding freeze moves forward.
Democratic led states including California, Colorado, Illinois, Minnesota and New York have already gone to court in other cases, arguing that the federal government does not have the legal authority to cut off funding that Congress has already approved.
Trump’s Critics Are Vocal
Critics say the president does not have the power to cancel congressionally approved funding on his own.
Federal Judge William H. Orrick of California has already ruled that earlier Trump attempts to defund sanctuary cities violated the Constitution. He said such actions broke separation of powers rules, the Spending Clause, and due process protections.
In previous rulings, Orrick blocked Trump from pulling funding from cities like San Francisco, Los Angeles, Chicago, Denver and Boston simply because they had sanctuary policies.
Another federal judge, Arun Subramanian, recently blocked the Trump administration from stopping child care subsidies in five states, saying the status quo should remain while the courts decide the issue.
Critics argue that Trump is using federal money as a political weapon and that only Congress has the authority to decide how those funds are spent.
Trump ran on restoring law and order and enforcing immigration laws. Sanctuary cities, in his view, are openly defying federal law and putting Americans at risk.
Now, he is using the one tool he believes will force compliance, money.
Whether the courts allow this move to stand is still uncertain. But as of now, Trump has drawn a hard line, and on February 1, sanctuary cities are set to feel the financial consequences of standing against federal law.
