Trump administration tells agencies to compile data on money sent to
Democratic states
[January 23, 2026]
By GEOFF MULVIHILL
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 “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. In Virginia, one of Democratic Gov.
Abigail Spanberger’s first acts after taking office Saturday was to
rescind a directive by Republican former Gov. Glenn Youngkin that
required law enforcement cooperation with immigration officials.
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.”
Trump said at a White House news conference Tuesday — the same day the
memo went to federal departments — that he still intended to cut off
funding.
“We’re not going to pay them anymore. They are sanctuary for criminals,”
he said. “They can sue us and maybe they’ll win, but we’re not giving
money to sanctuary cities anymore.”
Latest way Trump has targeted Democratic-controlled states
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.
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President Donald Trump speaks during a meeting of Global Business
Leaders at the Annual Meeting of the World Economic Forum in Davos,
Switzerland, Wednesday, Jan. 21, 2026. (AP Photo/Evan Vucci)
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.
Request is for information on most government funding streams
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 reporters Olivia Diaz and Ali Swenson contributed
to this article.
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