Public Rights Project and local governments win significant court victory in major federal funding case

OAKLAND, CA — Today, the Ninth Circuit delivered a major victory for local governments challenging the Trump administration’s attempt to use billions of dollars in federal funding to pressure communities to abandon lawful local policies and adopt the administration’s political agenda.

The decision today comes in King County v. Turner, a case that protects about $14 billion in federal funding for 75 cities, counties and local governments, including New York, Los Angeles and Chicago. These communities rely on this money for public safety, transportation, housing, public health and other essential public services — including programs like Santa Clara County’s administration of more than $34 million in annual HUD grant funds to serve about 10,000 residents experiencing homelessness. 

“This is a huge victory for people and communities,” said Jill Habig, founder and CEO of Public Rights Project. “The federal government can’t hold funding hostage to force local governments to abandon lawful policies. We’re talking about taxpayer dollars that provide housing, transportation, public health and other essential services. Today’s ruling confirms what we have argued from the beginning of this case: the federal government cannot force cities to give up their authority to protect immigrants, promote diversity and inclusion, safeguard LGBTQ+ rights and ensure access to reproductive health care. Public Rights Project is proud to stand alongside 75 cities and counties in defending billions of dollars for their residents. Our win shows what local governments can do when they push back together.”

The Ninth Circuit also provided important clarity about the limits of the federal government’s authority to impose anti-discrimination conditions on federal grants. The court affirmed that agencies can require recipients to comply with Title VI, as federal law already requires. But the administration can’t stretch Title VI beyond what the law permits or sidestep the procedures Congress established for enforcing it.

The ruling comes after more than a year of litigation over the administration’s efforts to attach sweeping new conditions to federal grants. King County v. Turner was filed in May 2025 with eight cities and counties and steadily expanded into a coalition of 75 local governments. The district court repeatedly sided with plaintiffs as the case played out, issuing multiple injunctions that blocked the Trump administration from imposing funding conditions.

The case will now return to the district court to determine the precise scope of the injunction consistent with the Ninth Circuit’s ruling.

The coalition is represented by Public Rights Project and Pacifica Law Group, which serve as co-counsel in the case.

Read the court’s order here.

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