DOT warns states, cities could lose funds over immigration, DEI policies

Kent Nishimura/Bloomberg

The Trump administration warned Thursday that states and cities may lose their transportation grants if they don't comply with federal immigration and anti-diversity, equity and inclusion policies.

"Federal grants come with a clear obligation to adhere to federal laws," said Transportation Secretary Sean Duffy in a statement accompanying the April 24 "follow the law" letter. "It shouldn't be controversial — enforce our immigration rules, end anti-American DEI policies, and protect free speech. These values reflect the priorities of the American people, and I will take action to ensure compliance." 

It's the latest effort to require states, cities and other federal funding recipients adhere to the Trump administration's priorities. On Monday, the DOT warned it would withhold federal road funds from New York City if the state does not halt its controversial congestion pricing program. In early February, the day after taking office, Duffy issued an order that ties transportation funds to projects located in areas that comply with federal immigration laws, among other stipulations. The memo appeared to address only discretionary grant funding, and not formula funds, the American Association of State Highway and Transportation Officials said at the time.

AASHTO declined to comment for this story.

Duffy's letter noted instances when grant recipients have declined to cooperate with federal immigration policy or given driver's licenses to people without legal U.S. status. He encouraged states to seek guidance if they're uncertain of whether they're violating federal law, saying "proactive engagement is strongly advised to prevent inadvertent noncompliance."

"Noncompliance with applicable federal laws, or failure to cooperate generally with federal authorities in the enforcement of federal law, will jeopardize your continued receipt of federal financial assistance from DOT and could lead to a loss of federal funding from DOT."

Local governments should be making decisions about local transportation projects, not Washington, D.C., said House Transportation and Infrastructure Committee Ranking Member Rick Larsen, D-Wash., in a statement Thursday.

"This latest missive from the Trump Administration injects more unnecessary chaos into infrastructure projects underway all around the country — the exact opposite of the long-term certainty these projects need to be successfully and efficiently completed," Larsen said. "Secretary Duffy should reverse course and allow projects around the country to be completed without ideological interference."