A federal judge ruled Monday that the Trump administration cannot unilaterally shut down a $650 million program that helps states shelter illegal immigrants, handing Washington state a preliminary injunction that keeps federal money flowing despite White House orders to end it.
U.S. District Judge Ricardo Martinez found the state likely to succeed in proving that FEMA Administrator Jocelyn Stader exceeded her authority when she terminated the Shelters and Services Program in March. The program, created by Congress in 2023, reimburses states and cities for housing, food, and medical care provided to migrants released into the country while awaiting immigration hearings.
The administration argued its immigration enforcement priorities justified ending the grants. Martinez disagreed, writing that executive branch policy preferences “do not override Congressional funding decisions.”
Washington state had already received $26 million in reimbursements for migrant services when FEMA suddenly announced the program’s termination. State officials told the court they face millions more in unreimbursed costs from sheltering migrants that federal immigration authorities released into their communities.
The ruling creates immediate headaches for the White House, which has moved aggressively to cut federal support for what it calls “illegal immigration infrastructure.” At least six other states that received program funding — including California, New York, and Illinois — are watching the case closely. Together, those states have drawn down more than $400 million from the program since its creation.
Martinez’s order specifically blocks FEMA from terminating the program nationwide while the lawsuit proceeds. The injunction applies beyond Washington state because the program operates as a single federal grant system that cannot be partially dismantled.
The Justice Department has not yet indicated whether it will appeal. A DOJ spokesman said the administration “strongly disagrees” with the ruling and maintains that funding programs that facilitate illegal immigration undermines border security.
Congress included $650 million for the program in its 2024 budget after border-state mayors complained they couldn’t afford the costs of housing migrants released by federal authorities. The program doesn’t fund immigration advocacy or legal services — only basic shelter, food, and acute medical care.
The case now heads to full litigation on the merits, but the preliminary injunction means program funding continues at least through the end of the fiscal year in September. After that, the program’s future depends on whether Congress renews it in upcoming budget negotiations.
Key Points
- Federal judge granted Washington state’s request to block FEMA from terminating a congressionally-funded program that reimburses states for sheltering illegal immigrants
- The nationwide injunction keeps $650 million in federal grants flowing despite White House orders to end what it calls “illegal immigration infrastructure”
- Six other states that received program funds are watching the case, which now heads to full trial on whether executive branch immigration policy can override Congressional appropriations
https://www.courthousenews.com/washington-state-wins-challenge-against-femas-termination-of-shelters-and-services-program/ – May 27, 2026
