A federal judge in California has halted the Trump administration’s attempt to withhold billions in federal grant funding from cities and counties that refuse to certify compliance with anti-diversity, equity and inclusion requirements, ruling the White House overstepped its constitutional authority.

Constitutional Separation of Powers at Stake

U.S. District Judge William Orrick issued a 68-page preliminary injunction blocking the administration from enforcing new conditions attached to congressionally approved grants. The conditions required local governments to certify they do not operate programs promoting diversity, equity and inclusion in ways that violate federal anti-discrimination laws. Judge Orrick determined these requirements contradict congressional intent and violate constitutional separation of powers principles.

The lawsuit was filed by eleven California and Oregon municipalities, including the cities of Fresno, Santa Clara, and Stockton, along with Los Angeles, San Diego and Santa Barbara counties. They challenged ideological conditions attached to grants Congress approved for public safety, disaster preparedness, policing, fire protection, water conservation and crime victim services. The plaintiffs argued federal law grants Congress, not the executive branch, control over federal spending decisions.

Billions in Critical Services Funding Affected

The blocked grant conditions threatened funding for anti-terrorism initiatives, disaster mitigation, flood protection, wildfire preparedness, law enforcement training, forensic science, human trafficking prevention and crime victim services. Judge Orrick concluded that allowing the restrictions would cause immediate harm to local governments and threaten public safety. He wrote that the challenged conditions have nothing to do with the congressional purpose behind these grant programs established by federal statute.

Beyond anti-DEI certifications, the administration’s requirements sought to encourage cooperation with federal immigration enforcement and demanded compliance with executive orders related to federal grants. The judge found these additions conflicted with the very statutes Congress enacted to create and fund the programs.

Latest Judicial Setback for Administration Policy

This decision represents another judicial rebuke of the Trump administration’s strategy to condition federal funding on compliance with its anti-DEI agenda. Federal judges have issued similar rulings in other jurisdictions, including a recent Seattle decision blocking comparable conditions on grants from other federal agencies. The preliminary injunction remains in place while the lawsuit proceeds through the courts. The Justice Department is expected to appeal the ruling to a higher court, continuing the legal battle over executive authority and congressional spending power.