Trump Administration Rescinds $24 Million in Federal Grants for Denver’s Migrant Shelters

DENVER, Colo. — The Trump administration has terminated approximately $24 million in federal grants previously allocated to Denver, Colorado, to cover costs associated with sheltering migrants, citing a shift in federal priorities. The decision, announced on April 28, 2025, targets Denver’s status as a so-called “sanctuary city,” which limits cooperation with federal immigration enforcement. This move follows through on earlier threats by the administration to withhold funding from jurisdictions that do not align with its immigration policies.

According to a letter from the Federal Emergency Management Agency (FEMA), the grants, awarded in 2023 and 2024 under FEMA’s Shelter and Services Program, were intended to reimburse Denver for expenses incurred while providing temporary shelter to migrants. The program, authorized by Congress, supports non-federal entities assisting noncitizen migrants released from Department of Homeland Security custody. Denver had been promised around $32 million between 2023 and 2024, with $24 million now rescinded, per FEMA’s directive.

The decision stems from an executive order signed by President Donald Trump on April 28, 2025, directing Attorney General Pam Bondi and Homeland Security Secretary Kristi Noem to identify “sanctuary jurisdictions” that obstruct federal immigration laws. The order aims to suspend or terminate federal funds, such as grants, to these jurisdictions to enforce compliance with federal immigration policies. Denver, while not officially self-identified as a sanctuary city, was labeled as such during Trump’s first administration due to policies limiting local law enforcement’s cooperation with U.S. Immigration and Customs Enforcement (ICE).

Denver’s budget director informed city council members on Monday that the loss of the $24 million would not cause an immediate financial crisis, as the grants are reimbursements for funds already spent, and federal payouts typically take years. However, the rescission could strain the city’s long-term budget planning. Jon Ewing, a spokesperson for Denver, emphasized that the city “has committed no violation and will continue to comply with local, state, and federal laws.”

The move comes amid heightened tensions between the Trump administration and Democratic-led cities like Denver, which have absorbed significant numbers of migrants since 2022. A Common Sense Institute study estimated that Denver has spent $356 million on migrant-related costs, including education, healthcare, and housing, equating to 8% of the city’s 2025 budget of $4.4 billion. Mayor Mike Johnston, a Democrat, has publicly opposed the administration’s immigration policies, including mass deportation plans, and faced scrutiny from Republican lawmakers who argue that sanctuary policies exacerbate local resource strain.

Critics of the administration’s decision, including Denver officials, argue that withholding federal funds punishes cities for humanitarian efforts. In contrast, supporters, such as former Colorado ICE director John Fabbricatore, view the action as a necessary step to prioritize federal immigration enforcement. The debate underscores broader national divisions over immigration policy, with Denver’s experience reflecting challenges faced by other cities like Chicago and New York, which also received FEMA grants under the same program.

As the Trump administration continues its crackdown on sanctuary jurisdictions, Denver faces the challenge of balancing its humanitarian commitments with fiscal constraints. The city is reviewing its options, including potential legal challenges, as it navigates the financial and political fallout of the grant termination.

Sources: Denver Post, Denver7, Fox News, Yahoo News, Daily Mail, Colorado Hometown Weekly

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