Trump to cut federal payments to sanctuary cities starting Feb 1 over immigration policies

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President Donald Trump said his administration will cease federal payments to sanctuary cities and states with sanctuary policies starting Feb. 1, while citing jurisdictions that protect criminals and fuel fraud and crime.

Speaking at the Detroit Economic Club, Trump said the move was aimed at cities and states that refuse to cooperate with federal immigration enforcement and in the administration's bid to stamp out fraud.

"Starting Feb. 1, we’re not making any payments to sanctuary cities or states having sanctuary cities because they do everything possible to protect criminals at the expense of American citizens," Trump said.

"And it breeds fraud and crime and all the other problems that come. So we’re not making any payment to anybody that supports sanctuary," he added.

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President Donald Trump said he's cutting off federal funding to sanctuary cities on Feb. 1. (Bonnie Cash/UPI/Bloomberg via Getty Images)

Trump also criticized Minnesota officials while discussing what he described as widespread fraud in the state.

"We have also suspended payments tied to suspected scammers in Minnesota, of which there are many," Trump said. "It’s a great state. It was a great state. Now it’s getting destroyed by that stupid governor."

Trump went on to accuse Gov. Tim Walz of corruption and said the level of fraud could not have gone unnoticed by state leadership.

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The administration’s actions come as a federal judge on Jan. 9 temporarily blocked the Trump administration from stopping subsidies tied to childcare programs in five states, including Minnesota, amid allegations of widespread fraud.

U.S. District Judge Arun Subramanian did not rule on the legality of the funding freeze but said the states met the legal threshold to preserve the "status quo" on funding for at least two weeks while legal arguments continue.

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A general view of downtown Minneapolis, MInnesota, on Dec. 4, 2025. (Stephen Maturen/Getty Images)

The U.S. Department of Health and Human Services (HHS) also announced it would withhold funds for programs in five Democratic-led states, citing concerns over fraud and misuse of federal dollars.

As previously reported by Fox News Digital, those programs include the Child Care and Development Fund, the Temporary Assistance for Needy Families program and the Social Services Block Grant.

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"Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose," HHS Deputy Secretary Jim O’Neill had said in a statement.

The states that challenged the action include California, Colorado, Illinois, Minnesota and New York, which argued in court filings that the federal government does not have the legal authority to end the funding.