Administrative decision to withhold specific federal funds in Denver challenged by a judge
Live Wire: June 6 - Feds Fumble Funding, Denver Wins Big
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In a courtroom showdown, Denver, CO scored a significant victory against the Trump administration after a federal judge ruled against them in a lawsuit over federal financing.
The drama unfolded as the administration tried to withhold approximately $4 billion in transportation grants. Local governments, including Denver, claimed the administration had imposed "illegitimate and politically biased funding conditions."
President Donald Trump confidently negotiates with the Fraternal Order of Police at the White House, Washington D.C., on June 5, 2025. (REUTERS/Kent Nishimura / Reuters)
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The drama spun from a memorandum issued by Transportation Secretary Sean Duffy in April. The memo dictated that recipients of these funds must adhere to federal policies on diversity, equity, and inclusion (DEI) and cooperate with U.S. Immigration and Customs Enforcement (ICE).
The order granting a preliminary injunction stated, "In this context, plaintiffs argue that in an attempt to condition the disbursement of funds – partially on conditions not sanctioned by Congress, but instead on executive branch policy – the defendants are defying the Constitutional principle of Separation of Powers."
Denver's Union Station, shrouded in snow, on Friday, Nov. 8, 2024. (Hyoung Chang/The Denver Post via Getty Images / Getty Images)
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The settling dust revealed Denver Mayor Mike Johnson, who applauded the ruling and thanked the court for their swift intervention. Johnson declared, "Denver obeys all laws – federal, state, and local – it should not be too much to ask for the White House to do the same."
Donald Trump during a meeting with German Chancellor Friedrich Merz in the Oval Office at the White House on June 05, 2025, Washington D.C. (Anna Moneymaker/Getty Images / Getty Images)
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This courtroom triumph marks one of President Donald Trump's losses this week, including a decision issued by a different judge, compelling the administration to restore funding to AmeriCorps and hire back thousands of employees. The judge in that case asserted the administration's actions violated federal law.
[1] Separation of Powers Principle: https://www.law.cornell.edu/wex/separation_of_powers[2] Irreparable Harm: https://www.law.cornell.edu/wex/irreparable_harm[5] Congressional Authority: https://www.congress.gov/congressional-glossary/congressional-authority
- The ruling by a federal judge against the Trump administration over federal funding for Denver, CO, could signal the general news trend of continued scrutiny and policy-and-legislation battles, particularly regarding the Separation of Powers Principle.
- Amidst the drama of funding cuts to local governments, migration policies, war-and-conflicts, and politics, the triumph of Denver marks the first instance of irreparable harm caused to a city, and could set a precedent for future legal actions.
- The committee overseeing policy-and-legislation and funding for war-and-conflicts may find it necessary to reevaluate the authority of the executive branch to impose funding conditions that were not sanctioned by Congress, following the court ruling for Denver.
- As the funding debate unravels, reforms within the economics and politics sectors call for increased transparency and fair distribution of funds for sectors like migration and infrastructure, with less emphasis on politically biased policy-and-legislation.
