Denver has filed a lawsuit against the federal government following the Trump administration’s decision to revoke $24 million in federal grants. This funding was earmarked to assist the city as it managed the arrival of nearly 43,000 new immigrants between late 2022 and the fall of 2024.
Denver’s lawsuit is part of a broader legal challenge that includes participation from Chicago and Pima County, Arizona. The plaintiffs argue that the federal government’s actions violate constitutional provisions granting Congress authority over appropriations. They also contend that the administration did not adhere to the Administrative Procedure Act, which requires justification for funding rescissions.
In March 2025, the administration first indicated it might withhold funds following allegations of misuse concerning federal resources designated for immigrant sheltering. A letter from the Federal Emergency Management Agency (FEMA) requested detailed information about the new immigrants served by the city, along with a comprehensive outline of services provided. The letter warned that funding would be suspended during an ongoing review.
FEMA had initially committed approximately $32 million to Denver’s Shelter and Services Program, of which about $8 million had already been disbursed. After receiving the notification regarding potential funding withdrawal, Denver Attorney Lisi Owen expressed a desire to understand the federal government’s basis for its accusations against the city. A spokesperson reiterated the city’s compliance with all applicable laws and regulations.
The Trump administration formally executed the funding revocation in an April 1, 2025, letter, citing a focus on enforcing immigration laws. It asserted that grant programs that may inadvertently support unauthorized immigration are incompatible with the current enforcement objectives of the Department of Homeland Security.
During an April 28 city council meeting, Denver’s Budget Director Justin Sykes announced that the loss of the remaining grant money would have significant implications since it had already been planned to aid in managing influx-related expenses. Denver Mayor Mike Johnston criticized the administration’s actions, stating that the federal government was improperly punishing cities responding to a crisis that required immediate attention.
In reaction, Rep. Lauren Boebert denounced the lawsuit, suggesting that the mayor’s actions were detrimental to local taxpayers and signaled a disregard for legal obligations. The Colorado Union of Taxpayers similarly criticized Mayor Johnston’s approach, urging him to reconsider policies and focus on establishing responsible fiscal solutions for the challenges facing Denver.
For fiscal year 2024, the Department of Homeland Security announced it would allocate $641 million to communities dealing with the impacts of increased immigration. Many of the new arrivals to Denver came from Texas, where Governor Greg Abbott had initiated a program to bus immigrants to various cities, including Denver.
The city emphasized its commitment to providing support to newcomers, many of whom reportedly arrived with limited resources and no job prospects. Denver’s administration highlighted that their response was in line with a broader need to safeguard public welfare and maintain city services, amidst increasing pressures from federal policy changes.
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