20 States, including Illinois, granted preliminary injunction against the USDOT from withholding Federal Funds.

Recently, US Department of Transportation (USDOT) Secretary Sean Duffy released a letter titled, “Follow the Law”, which threatened to withhold federal funding from sanctuary states. 20 states, including Illinois, filed a lawsuit against the USDOT stating that withholding federal funds undermines the states authority and creates undue burdens when it comes to managing local resources and public safety. The federal government has argued that the federal funding will stop if states don’t come into compliance with immigration policies and border security.

On June 19, 2025, Chief US District Judge John J. McConnell of Providence Rhode Island granted a temporary victory for the states by granting a preliminary injunction against USDOT. The preliminary injunction orders the USDOT to withhold implementing or enforcing Immigration Enforcement Condition’s (IEC) or withholding/terminating federal funding based on the IEC’s.

Illinois Attorney General Kwame Raoul, who is spearheading the lawsuit along with the Attorney Generals for California, New Jersey, and Rhode Island, stated that, “[s]tates rely on billions of dollars appropriated by Congress to keep our residents safe as they travel our roads, railways and the skies…[t]his critical funding has nothing to do with immigration, and the administration’s attempt to hold it hostage unless states agree to do the federal government’s job of civil immigration enforcement is unconstitutional and outrageous.”

The state of Illinois, according to Raul relies on federal funding for highway development, airport safety, and protection against train collisions. The state of Illinois was granted $2 billion last year to maintain the National Highway system, state and local roads and bridges, public transportation and public ports.

As it stands, the temporary preliminary injunction prohibits the federal government from withholding funds to the states. However, as the case continues to unfold, experts suggest that it could ultimately shape future relations between state and federal governments regarding regulatory oversight.

Sources:

State AGs Obtain Preliminary Injunction Against Enforcement of U.S. Department of Transportation Condition for Receipt of Grants – State Attorneys General Blog

Legal Battle Erupts as 20 States Challenge USDOT’s Immigration Funding Requirements – PublicLawLibrary.org

District Court Issues Preliminary Injunction on Immigration Conditions for Federal Transportation Grants – National League of Cities

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