The Federal Emergency Management Agency Cancels $24 Million Grant to Denver for Migrant Shelter Expenses
The Federal Emergency Management Agency (FEMA) has informed Denver that it will not be providing the city with the promised $24 million grant to cover expenses incurred while sheltering migrants. This decision comes in line with President Trump’s directive to focus on enforcing immigration laws and securing the border, as stated in a letter obtained by JS.
The city received the notice on April 1, but it was only made public during a City Council presentation by the Department of Finance. Budget Director Justin Sykes mentioned the letter during the presentation, highlighting that the department has not factored in the canceled or potentially canceled federal grant funds in the development of the upcoming 2026 city budget.
Denver was awarded $32 million by FEMA, of which only $8 million has been disbursed, leaving $24 million unfulfilled. It is uncertain whether federal officials will also require the city to return the funds already provided. The city had planned to use the FEMA grant to offset the costs of sheltering approximately 43,000 migrants who arrived between late 2022 and 2024.
While Denver relies on around $150 million in federal funds for its 2025 budget, the threat of funding cuts from the federal government is being closely monitored. President Trump has previously threatened to withhold federal funding from cities that are perceived as being too supportive of undocumented immigrants.
Similar to Denver, New York also received a letter from FEMA terminating $188 million in grants on April 1. Additionally, the Justice Department is taking legal action against Chicago over its policies that restrict cooperation with immigration authorities.
Despite the impact of losing the FEMA funding on Denver’s budget, the immediate effects will not be felt as the city was not expecting reimbursement for several years. Earlier, FEMA had sent a letter to city officials in March threatening to withhold the funds, alleging that the money was being used for illegal activities. The agency requested detailed information on the individuals sheltered using the grant funds, which Denver provided in response.
The termination letter from FEMA cited that the grant award was not aligned with the department’s priorities. The grant was part of FEMA’s Shelter and Services Program, which Congress authorizes to support non-federal entities sheltering noncitizen migrants released by the Department of Homeland Security.
While there have been no specific threats from the Trump administration to retract other grant funds from the city, the President signed two executive orders on Monday related to his immigration policies. One order directs state and federal officials to publish lists of “sanctuary city” jurisdictions, while the other expands law enforcement operations to facilitate the detention of migrants.
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