Trump administration tells agencies to compile data on money sent to Democratic states
Jan 22, 2026, 11:54 AM | Updated: 2:30 pm
US President Donald Trump leaves after a signing ceremony of his Board of Peace initiative at the Annual Meeting of the World Economic Forum in Davos, Switzerland, Thursday, Jan. 22, 2026. (AP Photo/Markus Schreiber)
Credit: ASSOCIATED PRESS
(AP Photo/Markus Schreiber)
President Donald Trump’s budget office this week ordered most government agencies to compile data on the federal money that is sent to 14 mostly Democratic-controlled states and the District of Columbia in what it describes as a tool to “reduce the improper and fraudulent use of those funds.”
The order comes a week after Trump said he intended to cut off federal funding that goes to states that are home to so-called sanctuary cities that resist his immigration policies. He said that would start Feb. 1 but hasn’t unveiled further details.
A memo to federal departments and agencies did not explain why those states were targeted. All but one — Virginia — were either included last year on the administration’s list of sanctuary places or were home to at least one jurisdiction that was.
There is no strict definition for sanctuary policies or sanctuary cities, but the terms generally describe limited cooperation with U.S. Immigration and Customs Enforcement.
The memo, while unusual, stops far short of suspending money.
“This is a data-gathering exercise only,” it said. “It does not involve withholding funds.”
The memo, obtained by The Associated Press, directs federal agencies to submit information by Jan. 28 to the president’s budget office.
It asks for a swath of information about money flowing to California, Colorado, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, Washington and the District of Columbia. All but Minnesota are controlled by Democratic legislatures and all but Vermont have Democratic governors.
The list of targets includes all fully Democratic-controlled states except Hawaii, Maryland and New Mexico. And it includes all the states with nearly all the sanctuary jurisdictions. But it does not include some other states that are home to cities or counties on the list: Louisiana, Maryland, Michigan, New Mexico and Pennsylvania.
Trump’s administration has been focused deeply in recent weeks on the idea that federal money is being used fraudulently in blue states.
Earlier this month, the administration tried to put on hold funds for child care subsidies and other aid for low-income families in California, Colorado, Illinois, Minnesota and New York, citing the possibility of fraud. A judge paused that effort.
The memo applies to all federal departments and agencies except the Department of Defense, which the administration now refers to as the Department of War, and the Department of Veterans Affairs.
It asks for details about grants, loans and other federal funds provided to the states and local governments in those states, along with institutions of higher education and nonprofits in the states.
The agencies are being told not to report on the use of at least some money that goes directly to individuals, such as federal student aid.
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Associated Press reporter Ali Swenson contributed to this article.
