A directive from President Donald Trump pausing some federal funding has local officials scrambling to understand the downstream effects and to challenge in court what could be a significant blow to state and city revenue.
The Trump memo, which ordered an immediate freeze of certain grants and loans, appears to target federal funding in line with the president’s gutting of diversity, equity, and inclusion programs, though details were scant Tuesday.
U.S. District Judge Loren L. AliKhan blocked Trump’s order minutes before the funding freeze was scheduled to go into effect. The judge’s order lasts until Monday afternoon and applies only to existing programs.
David Chiu, San Francisco’s city attorney, said the directive could be “potentially catastrophic to our city, our state, and our country.” San Francisco faces a budget deficit of $867 million over the next two years, and there are concerns that actions from the federal government could exacerbate the crisis.
“There are many people across the country that are scratching their heads trying to understand what this means,” Chiu told The Standard.
In preparation for Trump’s presidency, the Board of Supervisors voted to quickly approve $132 million in federal funding this month. The money goes toward six city departments from various federal agencies, including the U.S. Environmental Protection Agency and the Department of Transportation.
What will happen to that funding is unclear, officials said. In a statement, Mayor Daniel Lurie said, “If this decision is implemented, it will make San Franciscans less safe and less financially stable.”
Trump’s directive triggered an immediate legal response from California Attorney General Rob Bonta, who filed a lawsuit with more than two dozen attorneys nationwide seeking an immediate injunction against the freeze.
In an interview, Bonta said he was confident the court’s injunction will stand, calling Trump’s order “blatantly unconstitutional.” However, he cautioned that Trump could still seek to freeze federal funds through Congress.
“[Trump’s order] will face a preliminary injunction and soon a permanent injunction,” Bonta said. “I wouldn’t expect any major holes blown in San Francisco’s budget based on this.”
“If there’s an additional attempt to go through Congress and it’s put on Mr. Trump’s desk and he signs it, that’s something to give consideration to,” Bonta added.
During a Tuesday press conference, Bonta said he was specifically concerned with the possibility of Trump blocking federal disaster aid tied to the recent wildfires in Southern California.
“I do believe the FEMA funding is at risk,” said Bonta. “We need it, we need it now, we need it yesterday.”
The lawsuit is the second legal challenge Bonta has pursued against the president. Last week, the state attorney general filed a lawsuit against Trump’s executive order seeking to end birthright citizenship.
Tuesday’s court action coincided with a large demonstration at City Hall against Trump’s executive orders regarding immigration and fears surrounding U.S. Immigration and Customs Enforcement raids.
At the gathering, Lurie, who has been largely hesitant to discuss Trump’s actions, made his strongest public remarks about immigration since taking office.
“We value our immigrant communities,” he said. “We recognize your contributions to our city. We stand with you. You belong here. … To our immigrant neighbors, this city is your home and know that I and everyone here will continue working to make sure it remains a safe and welcoming home for all families, no matter where you come from.”
Lurie was joined by the entire Board of Supervisors, Police Chief Bill Scott, Sheriff Paul Miyamoto, and a smattering of labor leaders after reports of ICE officials trying to enter downtown office buildings.
The officials reaffirmed the city’s limited role in immigration matters — known as its “sanctuary city” policy — asserting that it is the federal government’s responsibility to enforce immigration laws, not local law enforcement.
Later in the day, the Board of Supervisors unanimously passed a resolution reaffirming the city’s commitment to sanctuary city guidelines, which generally prohibit city employees from using local government resources to assist federal immigration enforcement.
Joe Fitzgerald Rodriguez contributed to this report.