New York Attorney General Letitia James declared a major legal win against Kristi Noem’s Department of Homeland Security, saying a court ruling will restore funding that supports anti-terrorism work and emergency response programs across the state.
“We won our case against @DHSgov, restoring funding for lifesaving anti-terrorism and emergency response programs. This is a major victory for our law enforcement and local leaders who depend on these funds to keep New Yorkers safe,” James wrote on X on Tuesday.
The announcement follows a ruling issued Monday by Rhode Island U.S. District Judge Mary S. McElroy, who was appointed by Trump. This case was brought by New York and a group of state attorneys general. The lawsuit challenged DHS over changes to funding related to FEMA and homeland security grant programs. The states argued that this funding was vital for training, preparedness, and counter-terror operations.
James claimed that the funding in question was connected to national security and emergency response, and that it was cut after New York refused to support what she called the federal government’s “attacks on immigrants.” The case involved attorneys general from 10 other states and Washington, D.C., forming a united front against the administration’s policies.
We won our case against @DHSgov, restoring funding for lifesaving anti-terrorism and emergency response programs.⁰⁰This is a major victory for our law enforcement and local leaders who depend on these funds to keep New Yorkers safe. https://t.co/GdzpkI8xKR
— NY AG James (@NewYorkStateAG) December 23, 2025
In her ruling, Judge McElroy noted that this dispute is another example of the Trump administration trying to link federal grants to immigration enforcement. She referenced a previous ruling that prevented DHS from using grant conditions this way. The states alleged that DHS still sent letters indicating funding was being reallocated, despite the earlier decision.
DHS started reallocating funds from the Homeland Security Grant Program in September. They shifted money away from states that did not cooperate with the Trump administration’s immigration enforcement priorities. The plaintiff states argued that this money was not just political maneuvering; it was being used for important work like law enforcement training, emergency preparedness, and counter-terrorism efforts.
Critics of the administration have seen the funding changes as a way to pressure so-called sanctuary jurisdictions to comply with federal immigration enforcement. Supporters, on the other hand, argued that the federal government has the right to prioritize jurisdictions that cooperate with immigration authorities. According to James, this ruling closes that option, at least for this case.
James has been a frequent target of Trump since she pursued a major civil fraud case against him during his years out of office. Earlier this year, officials charged her with federal mortgage fraud, which many believed was retaliatory, but in what was a farce of a case, it was thrown out, and Trump’s admin failed to reindict her.
As the fallout continues, the practical question is how quickly the restored funding will move back into place, and whether the administration will try to appeal or revise the grant structure again. For James, she can take a victory lap for the meantime, but this is by no means an end to her battles with the Trump administration.
