A federal judge has temporarily halted the Trump administration’s plan to potentially withhold approximately $600 million in transportation grant funding from the city of Denver, citing constitutional concerns regarding the administration’s actions.
U.S. District Court Judge Barbara Jacobs Rothstein issued preliminary injunctions this week, agreeing with the city of Denver and numerous other municipalities involved in a lawsuit. The cities argued that the administration’s threats to revoke funding were likely unconstitutional and an overreach of presidential authority.
In her ruling, Judge Rothstein emphasized the critical importance of maintaining the health of transportation systems, stating, “One need not conjure the most extreme cases of bridges collapsing and train derailments to understand instinctively that maintaining the health of the systems is critical.”
The legal action was initiated on May 21 by New York City, Denver, and 29 other local governments and agencies, which challenged a memo from U.S. Transportation Secretary Sean Duffy. Duffy, appointed by President Donald Trump, indicated that federal grants would be contingent upon cities aligning with the administration’s stances on immigration and diversity policies.
The memo suggested that programs aimed at promoting “diversity, equity, and inclusion” (DEI) would violate federal law. Duffy also emphasized that cities must fully cooperate with federal immigration enforcement to be eligible for funding.
City officials contended that these new requirements were unconstitutional and exceeded the powers granted to the president by Congress in terms of appropriating federal funds.
Jon Ewing, a spokesperson for the mayor’s office, noted that Denver’s Department of Transportation and Infrastructure has received about $300 million in federal funding in recent years, with an additional $300 million awarded to Denver International Airport.
Judge Rothstein supported the plaintiffs, stating that the administration’s actions would violate the separation of powers doctrine, which allocates the federal “power of the purse” to Congress alone.
She pointed out that the fear of losing funding was already causing significant harm to the cities as they planned their budgets, adding, “It is this looming risk itself that is the injury, and one that plaintiffs are already suffering.”
Unless there is another ruling from the court, the U.S. Department of Transportation is currently prohibited from enforcing the new conditions for grant distributions under Rothstein’s ruling.
In a statement following the decision, Denver Mayor Mike Johnston described the ruling as a victory. He stated, “Denver follows all laws — federal, state, and local — and it should not be so much to ask the White House to do the same.”
Additionally, the city of Denver is currently involved in litigation against the Federal Emergency Management Agency (FEMA) after FEMA stated it would cease paying approximately $24 million in reimbursements to the city for costs related to housing migrants.
Moreover, the Department of Justice has filed a separate lawsuit against Denver, targeting both city and state officials over local policies that limit cooperation between law enforcement and immigration enforcement agencies.
The ruling is only preliminary, and the larger case will continue as the court deliberates on the constitutionality of the administration’s funding conditions.
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