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Full Breakdown

States Sue FEMA and DHS Over Disaster-Funding Conditions

7/25/2026, 1:28:07 PM

The Lawsuit and Its Claims

A coalition of 25 Democratic attorneys general, led by California Attorney General Rob Bonta, and the governors of Kentucky and Pennsylvania filed a federal suit in Rhode Island challenging new conditions attached to Homeland Security Grant Program awards. The complaint alleges that the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA) are withholding or threatening to withhold disaster-preparedness and counter-terrorism funds unless states adopt federal directives on voter-citizenship verification, paper-ballot usage, post-election audits, and cooperation with Immigration and Customs Enforcement (ICE).

Background and Context

The rules expand compliance to include use of the federal SAVE database for voter-registration checks and mandatory data sharing of unredacted voter rolls.

Key Figures

  • Rob Bonta – California Attorney General, lead plaintiff.
  • Peter F. Neronha – Rhode Island Attorney General, co-lead.
  • Josh Shapiro – Governor of Pennsylvania, co-plaintiff.
  • Andy Beshear – Governor of Kentucky, co-plaintiff.

Data and Statistics

  • The contested conditions affect more than $740 million in combined disaster-preparedness and counter-terrorism grants.
  • Plaintiffs estimate FEMA could withhold at least 20 % of the awards, roughly $148 million, from the participating states.
  • Pennsylvania faces a loss of about $6 million in federal aid for disaster preparation and recovery.

Official Statements & Responses

Rob Bonta said the administration is using “bully” tactics to force states to adopt policies unrelated to emergency management. A FEMA spokesperson called the lawsuit “partisan pushback” and described the requirements as “common-sense measures” for election integrity and national security.

Conflicting Reports & Gaps

Sources differ on the precise financial impact. The Guardian cites “more than $740 million” at stake, while CBS News quantifies the potential withholding at “about $148 million” (20 % of awards). The Inquirer highlights a state-specific figure of “$6 million” for Pennsylvania. No source provides a definitive total amount that would be lost if all conditions were enforced, leaving the overall fiscal magnitude uncertain.

Verbatim Quotes

  • “President Trump has little support for both his mass deportation agenda and his baseless claims of election fraud, so instead, he’s trying to bully state and local governments into adopting his preferred policies in exchange for much-needed funding,” — Rob Bonta
  • “The administration has already lost similar fights in court, and we expect this latest unlawful attempt to fail as well,” — Rob Bonta
  • “The Trump Administration is holding critical funding for homeland security and disaster response hostage in their latest attempt to take over our elections and perpetuate baseless conspiracy theories,” — Gov. Josh Shapiro
  • “Congress allocated these funds to the states for preparing for and responding to emergencies including counterterrorism and natural disasters, and the executive branch has no legal say in the matter,” — Peter F. Neronha

What’s Next

Congressional Democrats plan to issue a formal denouncement of the funding conditions on September 11, warning that the practice threatens the longstanding partnership between federal agencies and state governments. The lawsuit seeks a federal injunction to block the conditions nationwide and to require FEMA and DHS to issue revised funding documents.