The U.S. Ninth Circuit Court of Appeals on Tuesday upheld a ban on the Donald Trump administration’s imposition of new conditions on federal grants. The rules could have cost King County hundreds of millions of dollars for homelessness programs and transportation infrastructure unless local officials abandoned diversity initiatives and agreed to cooperate with federal immigration authorities, ICE.
King County oversees such programs not only in Seattle but also in neighboring cities and unincorporated areas. Unlike the city government, whose authority is limited to Seattle’s boundaries, the county manages regional social services, homelessness programs and transportation projects connecting different parts of the metropolitan area.
King County filed the lawsuit against the administration with the support of more than 70 local governments. They argued that the president cannot unilaterally change the conditions of grants already approved by Congress. The case concerned executive orders requiring the Department of Housing and Urban Development and the Department of Transportation to attach political requirements to their funding.
Under those requirements, local agencies would have had to abandon equality, diversity and inclusion programs, refrain from supporting what the administration called “gender ideology” and assist ICE. Otherwise, they risked losing federal funds. A lower court had previously blocked the rules, and King County said the ruling had preserved or would provide approximately $364 million.
The appellate panel split 2–1 on the issue, but the majority left the injunction in place. Judge Margaret McKeown said the government had not identified specific legal authority for imposing the new conditions and was effectively relying only on the claim that “the president ordered it.” She also noted that a homeless-services provider could have lost funding merely for using a transgender person’s chosen name and helping that person obtain mental-health counseling.
The case also involves Pierce and Snohomish counties, as well as the Port of Seattle. Their participation reflects the regional scope of the dispute: The port operates the airport, maritime terminals and related freight and tourism activity, while the neighboring counties are closely connected to Seattle through daily commuting, trade and logistics. Together, they form part of the Puget Sound region’s integrated transportation and economic system.
Local leaders welcomed the ruling but emphasized that the dispute is not over: The case will continue in district court, and the administration could appeal to the Supreme Court. King County Executive Girmay Zahilay called the decision confirmation that the president cannot turn federal funding into a political weapon.
Based on: Court blocks Trump push to strip grant funds from King County