Trump Administration Threatens Funding Cuts Over Immigration and DEI Policies

The Trump administration has warned states of possible funding cuts for transportation if they fail to comply with federal immigration enforcement or continue diversity, equity, and inclusion (DEI) programs. U.S. Transportation Secretary Sean Duffy emphasized adherence to merit-based practices as a condition for grant eligibility. Democratic lawmakers criticized the initiative.

The Trump administration on Thursday announced potential funding cuts for states that do not cooperate with federal immigration enforcement or maintain diversity, equity, and inclusion (DEI) programs. U.S. Transportation Secretary Sean Duffy informed states that grant recipients must ensure personnel practices are 'merit-based.'

Secretary Duffy's letter indicated that noncompliance with federal immigration rules or maintaining discriminatory DEI policies could lead to financial repercussions. He emphasized that states receiving government grants must follow federal laws. Duffy referenced that some states have issued driver's licenses to individuals in violation of federal law, impacting their eligibility for funding.

In March, a U.S. appeals court supported a temporary ban on DEI programs in federal agencies and businesses with government contracts. Democrats like Representative Rick Larsen criticized the administration's move, calling it an unnecessary intervention in ongoing infrastructure projects. Larsen argued that political disputes should not interfere with transportation policy.

(With inputs from agencies.)