USDOT Ends Effort to Tie Transportation Funding to ICE Cooperation

The department ended its effort to challenge a court ruling barring it from withholding federal grants over immigration enforcement.

1 minute read

January 22, 2026, 6:00 AM PST

By Diana Ionescu @aworkoffiction


People protesting ICE presence in Minneapolis in January 2026.

Minneapolis residents protest ICE presence in January 2026. | Alejandro Diaz Manrique / Shutterstock

The U.S. Department of Transportation (USDOT) dropped its attempt to tie federal grant funding to cooperation with immigration enforcement operations, reports Graham Kilmer in Urban Milwaukee.

“In May, Wisconsin and 21 other states sued the federal agency, arguing transportation and immigration enforcement are unrelated and the Trump administration was attempting to “unlawfully usurp” congressional authority over spending.” In November, a U.S. District Judge ruled in favor of the states. 

USDOT at first appealed the ruling, but dropped the appeal last week. The agency is now barred from withholding funding from state and local governments on the basis of not cooperating with immigration enforcement. 

Wednesday, January 21, 2026 in Urban Milwaukee

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