States Warned They Could Lose Transportation Funding Over Immigration, DEI Policies

April 24, 2025 by Dan McCue
States Warned They Could Lose Transportation Funding Over Immigration, DEI Policies
U.S. Dept. of Transportation headquarters. (US DOT Photo)

WASHINGTON — The Trump administration warned states receiving federal transportation funding on Thursday that they could lose that money for failing to cooperate on federal immigration enforcement efforts or for not ending their diversity, equity and inclusion programs.

The warning came in the form of a letter from Transportation Secretary Sean Duffy, who reminded the recipients that by accepting DOT funds, they had entered into “legally enforceable agreements with the United States government and are obligated to comply fully with all applicable federal laws and regulations.” 

“These laws and regulations include the U.S. Constitution, federal statutes, applicable rules and public policy requirements, including, among others, those protecting free speech and religious liberty and those prohibiting discrimination and enforcing controls on ille­gal immigration,” Duffy said.

When it comes to immigration, Duffy cited an executive order signed by President Donald Trump in January directing the Departments of Homeland Security and Agriculture to deny federal funding to so-called “sanctuary jurisdictions.”

Sanctuary jurisdictions are state or local areas that limit their cooperation with federal immigration enforcement agencies, often by restricting the sharing of information about immigration status or the detention of individuals for immigration violations.

“Your legal obligations require cooperation generally with federal authorities in the enforcement of federal law, including cooperating with and not impeding U.S. Immigration and Customs Enforcement and other federal offices and components of the Department of Homeland Security in the enforcement of federal immigration law,” Duffy said. 

He continued by saying the DOT has noted reported instances of states receiving federal financial assistance declining to cooperate with ICE investigations. 

“Such actions undermine federal sovereignty in the enforcement of immigration law, compromise the safety and security of the transportation systems supported by DOT financial assistance, and prioritize illegal aliens over the safety and welfare of the American people whose federal taxes fund DOT’s financial assistance programs,” Duffy said.

When it comes to DEI programs, Duffy pointed to another executive order signed in January aimed at “ending radical and wasteful government DEI programs and preferencing.”

“Whether or not described in neutral terms, any policy, program or activity that is premised on a prohibited classification, including discriminatory policies or practices designed to achieve so-called ‘diversity, equity and inclusion,’ or ‘DEI,’ goals, presumptively violates federal law,” Duffy wrote. 

He went on to say that recipients of DOT financial assistance must ensure that the personnel practices (including hiring, promotions and terminations) within their organizations are merit-based and do not discriminate based on prohibited categories. 

“Recipients are also precluded from allocating money received under DOT awards — such as through contracts or the provision of other benefits — based on suspect classifications,” Duffy continued, adding, “Any discriminatory actions in your policies, programs and activities based on prohibited categories constitute a clear violation of federal law and the terms of your grant agreements.” 

The letter drew a swift response from Rep. Rick Larsen, D-Wash., the top Democrat on the House Committee on Transportation and Infrastructure.

According to Larsen, “this latest missive from the Trump administration injects more unnecessary chaos into infrastructure projects underway all around the country — the exact opposite of the long-term certainty these projects need to be successfully and efficiently completed. 

“Culture wars have no place in transportation policy. Secretary Duffy should reverse course and allow projects around the country to be completed without ideological interference,” Larsen added.

Dan can be reached at [email protected] and @DanMcCue                

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  • DEI programs
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