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A federal judge handed Denver, Colo., a financial win after ruling against the Trump administration in a lawsuit over federal funding.
The administration had threatened to withhold $4 billion in federal transportation grants. Denver and other local governments argued that in its threat, the Trump administration issued “unlawful and politically motivated funding conditions.”
President Donald Trump participates in a roundtable discussion with the Fraternal Order of Police at the White House in Washington, D.C., June 5, 2025. (REUTERS/Kent Nishimura / Reuters)
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The requirements came from a memo issued by Transportation Secretary Sean Duffy in April. In the memo, Duffy informed recipients that they were required to comply with federal policies on diversity, equity and inclusion (DEI) and cooperate with U.S. Immigration and Customs Enforcement (ICE).
“Against this backdrop, [the] plaintiffs argue that in attempting to condition disbursement of funds in part on grounds not authorized by Congress, but rather on Executive Branch policy, Defendants are acting in violation of the Separation of Powers principle,” the order granting the preliminary injunction read.
Snow covered RTD Union Station stop in Denver, Colorado on Friday, Nov. 8, 2024. (Hyoung Chang/The Denver Post via Getty Images / Getty Images)
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Denver Mayor Mike Johnston celebrated the ruling and expressed gratitude for the court’s quick action on the matter.
“Denver follows all laws – federal, state, and local – and it should not be so much to ask the White House to do the same,” Johnston said in a statement. “We appreciate the court’s swift and precise ruling protecting the federal funding that Denverites deserve.”
President Donald Trump delivers remarks during a meeting with German Chancellor Friedrich Merz in the Oval Office at the White House on June 05, 2025, in Washington, D.C. (Anna Moneymaker/Getty Images / Getty Images)
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This ruling represents one of President Donald Trump’s losses in court this week, including an order requiring the administration to restore funding to AmeriCorps and rehire thousands of employees. The judge in that case ruled that the administration’s actions violated federal law.
