San Diego, 70+ Jurisdictions Sue Federal Agencies Over $12B Grant Funding Conditions

San Diego, along with more than 70 other jurisdictions nationwide, has filed a lawsuit against several federal agencies for allegedly withholding over $12 billion in federal grant funding unless local governments comply with conditions aligned with President Donald Trump's political agenda. The disputed conditions reportedly include opposition to diversity, equity, and inclusion policies, participation in aggressive immigration enforcement, exclusion of transgender individuals, and restricting access to abortion services. San Diego faces the withholding of approximately $362 million in transportation and housing grants intended for affordable housing, infrastructure repair, homelessness services, and environmental programs. City Attorney Heather Ferbert described these stipulations as politically motivated and unlawful, emphasizing the critical importance of these funds for local services and infrastructure. The lawsuit, filed in the Western District of Washington, argues that these conditions are unconstitutional and unrelated to the original purposes of the grants established by Congress. Plaintiffs have obtained a temporary court injunction preventing the federal agencies from pausing or terminating the grants while litigation proceeds.