Chicago Sues Trump Admin Over DHS Funding Cuts Tied to DEI Programs; $100M in Grants at Risk
October 20, 2025
Chicago, along with eight other cities including Boston and Denver, has filed a federal lawsuit against the Trump administration to challenge new DHS funding restrictions that threaten to limit emergency grants based on diversity, equity, and inclusion (DEI) programs.
The new federal conditions require cities to certify they do not support DEI initiatives or similar philosophies, which Chicago's lawsuit argues are arbitrary, irrelevant to the grants' purpose, and violate the separation of powers.
Chicago Mayor Brandon Johnson filed the lawsuit to prevent the loss of up to $10 million in emergency preparedness funding next year, part of a broader $100 million in grants at risk for several cities.
Although the federal government has not yet withheld these grants, officials plan to enforce the new rules in the upcoming year.
Chicago emphasizes that these grants have been provided for over 75 years and that the new conditions threaten critical funds for emergency response, including training, infrastructure upgrades, and protective equipment.
City officials argue that the new rules violate the Constitution’s separation of powers by overriding Congress’s authority over spending and are politically motivated attempts to undermine local policies.
The lawsuit describes the federal guidelines as 'arbitrary and capricious' and claims they contradict the grants' original purpose.
The targeted federal funds are essential for city emergency and public safety operations, such as training first responders and upgrading emergency centers.
The new rules also require recipients to certify they do not support programs benefiting or incentivizing illegal immigration, which Chicago opposes.
Chicago contends that these conditions are used as political tools to undermine local policies and are improperly linked to grants already allocated by Congress for safety purposes.
Mayor Johnson condemned the federal government’s use of emergency funding as a political weapon and emphasized Chicago’s commitment to diversity, equity, and inclusion in public safety efforts.
He also called for a Justice Department investigation into Trump’s hiring practices, accusing him of using power to divide the American people.
Following the lawsuit, the Department of Homeland Security extended the deadline for cities to respond to these conditions until November 30.
Summary based on 3 sources
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Sources

Chicago Tribune • Oct 20, 2025
Chicago Mayor Brandon Johnson sues Trump over threat to cut emergency funding
Chicago Sun-Times • Oct 20, 2025
Chicago sues, challenging Trump's anti-diversity requirements in federal anti-terrorism grants - Chicago Sun-Times