On Thursday, July 23rd, 2026, a coalition of 25 states and the District of Columbia filed a lawsuit against the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security (DHS). The suit alleges that the Trump administration is withholding hundreds of millions of dollars in disaster-preparedness and homeland security grants to coerce states into adopting federal policies on elections and immigration.

The complaint challenges new conditions tied to the Homeland Security Grant Program funding. These conditions require states to verify voter citizenship through a federal database, transition to hand-marked paper ballots, conduct federally mandated election audits, and cooperate with federal immigration enforcement.

Plaintiff states estimate that FEMA could withhold at least 20% of their grant awards—approximately $148 million—and potentially terminate entire grants for continued noncompliance. DHS funds typically support emergency management efforts such as reimbursing first responders, bomb squads, cybersecurity, disaster response, and security at houses of worship.

The lawsuit also contests language allowing FEMA to cancel grants that no longer align with the administration's shifting priorities or interpretation of the "national interest." The states argue this authority undermines the reliability of multiyear federal awards and enables the executive branch to redirect spending approved by Congress.

Rhode Island Attorney General Peter F. Neronha, co-leading the case, stated, "Congress allocated these funds to the states for preparing for and responding to emergencies including counterterrorism and natural disasters, and the executive branch has no legal say in the matter."

FEMA responded that "this year, states must take critical, common-sense steps to protect U.S. elections before receiving their full Homeland Security Grant Program awards."

The lawsuit includes attorneys general from Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Vermont, Virginia, Washington, Wisconsin, and the District of Columbia, as well as the governors of Kentucky and Pennsylvania.

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