On September 30, 2025, New York Attorney General Letitia James sued Department of Homeland Security (DHS) Secretary Kristi Noem to prevent the federal government from defunding New York state public safety agencies by cutting nearly $34 million in Federal Emergency Management Agency (FEMA) grants designated to fight terrorism. FEMA did not give any reason for repealing New York’s Rail and Transit Security Grant Program (TSGP) funding, but sources suggest that the decision was based solely on New York’s so-called “sanctuary” status with regard to immigration enforcement. FEMA instead diverted funds that had previously been allocated to New York to other localities, including cities that are also considered “sanctuary jurisdictions.”  

When Congress established the TSGP in response to the horrific terrorist attacks of 9/11, it required FEMA to allocate support for states based on the risk of terrorism each state faces. The funds are used to protect transit networks against chemical, biological, radiological, and explosive threats and to improve transit evacuation systems. Stripping these funds leaves New Yorkers and visitors more vulnerable to terrorist attacks. New York’s funding application was the only one that was denied, seemingly based on a policy difference between New York and the Trump administration regarding whether to use state public safety resources to carry out federal immigration enforcement. Numerous jurisdictions choose not to engage in federal immigration operations for a host of reasons, including a need to foster trust with local communities or to focus instead on local safety priorities. 

New York asked the court to rule that Secretary Noem’s action violated the Administrative Procedure Act and the Constitution, in addition to being beyond the scope of her legal authority. The suit asked the court to issue a temporary restraining order preventing FEMA from diverting New York’s funding to other jurisdictions, block DHS and FEMA from otherwise making the funding unavailable, and restore full funding to New York. On October 1, 2025, the district court issued an order prohibiting the federal government from either diverting funds away from New York or letting them lapse and reverting the money back to the U.S. Treasury while the case is being argued.  

On October 16, 2025, a federal judge issued a permanent injunction blocking DHS from withholding more than $33 million in critical anti-terrorism funds.  

Millions of people use our subways, buses, and commuter rails each day. Today, the court temporarily stopped the federal government from ripping away $33 million in anti-terrorism funds that keep those riders safe. My office will never allow this administration to jeopardize New Yorkers’ security. Attorney General Letitia James