Trump Threatens To Withhold Funding To Sanctuary Cities: What It Means For NYC

NEW YORK CITY — President Donald Trump has threatened to withhold federal funds to states and cities with sanctuary policies, including New York, next month.

“Starting Feb. 1, we will not make any payments to sanctuary cities or states having sanctuary cities because they do everything possible to protect criminals at the expense of American citizens,” Trump said on Tuesday.

In funds are withheld, New York City could lose billions of dollars in federal funding. In total, the city would lose around $7.5 billion — more than 6 percent of the city's budget comes from the federal government.

Mayor Zohran Mamdani told reporters on Tuesday that has reached out to the President directly but has not heard back. He also posted a statement on X and criticized the potential move.

"Our values and our laws are not bargaining chips. We will always defend New Yorkers, even in the face of federal threats to withhold funding," he said.

In July 2025, the Trump administration filed a lawsuit against the city over its sanctuary laws.

Under the city's sanctuary policies, the NYPD and city agencies are prevented from cooperating with federal immigration enforcement.

Federal funding in the city covers cost for public housing, public education, Medicaid and SNAP benefits.

The city's sanctuary laws date back to Mayor Ed Koch, who issued it in 1989.