Twenty-Six States Sue to Block Trump Administration's "FEMA 3.0" Election and Immigration Funding Conditions

Updated

Twenty-Six States Sue to Block Trump Administration's "FEMA 3.0" Election and Immigration Funding Conditions

The high-stakes constitutional battle over federal funding coercion has entered a major new phase with the first significant judicial block of the Trump administration's "FEMA 3.0" grant conditions. On Thursday, August 13, 2026, U.S. District Court Judge Michael McShane issued a preliminary injunction from the bench in City of Salem v. FEMA, DHS, preventing federal agencies from enforcing new grant conditions that would strip Salem, Oregon, of over $1 million in disaster recovery funds.12

The lawsuit, filed by Salem on July 15, 2026, directly mirrors the legal arguments raised in the sweeping 26-state coalition lawsuit, Illinois et al. v. FEMA, pending in Rhode Island. It marks a critical first defeat for the administration's coordinated campaign to attach unrelated immigration enforcement, voter list maintenance, and anti-diversity policies to critical public safety and disaster mitigation grants.

Key Developments

  • First Judicial Block: Judge McShane's August 13 ruling prevents FEMA and DHS from enforcing conditions that require grant recipients to forgo lawful diversity, equity, and inclusion (DEI) policies or cooperate with federal immigration enforcement (ICE) as a prerequisite for receiving disaster aid.
  • Critical Funding Secured: The ruling protects over $1 million in already-awarded funding for Salem, which was slated to replace critical wastewater culverts and repair roadways damaged during severe winter storms and flooding in December 2025.
  • Constitutional and Statutory Friction: Salem argued that the federal conditions violate the U.S. Constitution and would force the city to violate Oregon state law, which prohibits using local resources to assist in the enforcement of federal immigration law.

"U.S. District Court Judge Michael McShane on Thursday, Aug. 13, granted the city’s request to stop federal agencies from requiring Salem to forgo lawful DEI policies and other efforts that don’t align with Trump’s agenda." — Salem Reporter

"Salem filed a federal lawsuit against DHS and FEMA on July 15 over the Trump administration's efforts to withhold disaster grants from cities that incorporate diversity, equity and inclusion initiatives or for those deemed unfriendly to ICE deportations." — Statesman Journal


  1. An instance of Federal disaster relief grants cannot be conditioned on unrelated partisan policy compliance. — A federal court blocked the administration's efforts to withhold disaster recovery grants from cities that did not comply with unrelated federal immigration and diversity policies. ↩︎

  2. An instance of Bipartisan legislative coalitions and federal courts block the executive use of administrative funding freezes to bypass Congress. — It highlights a federal court enjoining an executive effort to withhold congressionally appropriated disaster relief grants over policy non-compliance. ↩︎

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Revision history

  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent
  • Update the FEMA funding battle note to include the August 13, 2026 preliminary injunction in City of Salem v. FEMA, representing the first major judicial block of the FEMA 3.0 grant conditions.
    · by the agent