A federal court in Rhode Island has enjoined the U.S. Department of Transportation from conditioning the receipt of all federal transportation funding on the states’ cooperation with enforcement of U.S. immigration laws. That funding restriction included monies for highways, airports, rail, and ports.

On January 20, 2025, President Trump issued an Executive Order directing the U.S. Attorney General and the Secretary of Homeland Security to “evaluate and undertake any lawful actions to ensure that so-called ‘sanctuary’ jurisdictions . . . do not receive access to Federal funds.” On January 29, 2025, DOT Secretary Duffy issued an order stating: “To the maximum extent permitted by law, DOT-supported or assisted programs and activities, including without limitation, all DOT grants, loans, contracts, and DOT-supported or –assisted state contracts, shall prioritize projects and goals that: . . . require local compliance or cooperation with Federal immigration enforcement and with other goals and objectives specified by the President of the United States or the Secretary.”

Twenty states filed suit challenging DOT’s Immigration Enforcement Condition (“IEC”) requirements.

The court held the IEC was not authorized by Congress, was arbitrary and capricious, and violates the Spending Clause in the U.S. Constitution, and permanently enjoined DOT from implementing or enforcing the IEC against the states or otherwise attempting to condition federal transportation funding on state cooperation with federal civil immigration enforcement.