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AG Nessel Secures Order Protecting FEMA Funding from Illegal Conditions
December 26, 2025
LANSING — Michigan Attorney General Dana Nessel recently secured an order (PDF) from the United States District Court for the District of Oregon blocking the Trump administration from imposing illegal terms upon two Federal Emergency Management Agency (FEMA) grants. In November, Michigan Attorney General Dana Nessel led a coalition of 12 states in filing a lawsuit against Secretary Kristi Noem, the Department of Homeland Security, Secretary David Richardson, and FEMA for unlawfully interfering with grants already promised to the states for emergency management, disaster relief, and homeland security operations. The Michigan Department of Attorney General personally litigated the coalition’s arguments before the Court earlier this month.
“The Trump administration has shown time and again a disregard for the rule of law and for the safety of the people they are meant to serve,” Nessel said. “I am relieved the Court has halted these illegal actions and ensured our communities receive the FEMA funding they were promised. Assistant Attorney General Neil Giovanatti personally argued this case before the Court, and his professionalism, skill, and dedication were instrumental to this outcome. I am proud of his work and the work my office does every day to protect the rights of Michiganders and the critical resources they depend on.”
Since taking office in January, the Trump administration has attempted to reduce FEMA’s role and shift the burden of emergency management to the States by denying or restricting requests for emergency declarations, withholding grant funding, and imposing irrelevant and unconstitutional terms on recipients of long-standing FEMA grants. Many of these illegal actions have been successfully challenged in court, and a previous case resulted in more than $100 million reimbursed to the Michigan State Police.
In this case, the coalition successfully argued that the Trump administration included illegal and impossible-to-meet grant terms in the Emergency Management Performance Grant (EMPG) and the Homeland Security Grant Program (HSGP) that departed from past practice and served only as obstacles to States obtaining and using the funding.
These grants fund a substantial portion of the State’s emergency management apparatus, including the Emergency Management and Homeland Security Division within the Michigan State Police. They also provide federal funding to states to assist with homeland security and terrorism prevention, like active shooter trainings for law enforcement and school personnel in Michigan, as well as local police support for the Secret Service and operational overtime for State Troopers.
The federal government had placed an improper funding hold on one grant and changed the timeline for the expenditure of funding under both grants. The Court found that these terms violated the Administrative Procedures Act in several respects. Specifically, the hold on the EMPG exceeded Defendants’ statutory authority, was contrary to law, and was arbitrary and capricious. Likewise, the changed timeline for both grants was arbitrary and capricious because FEMA disregarded the States’ reliance interests and did not explain the change. By imposing these terms, the Trump administration inappropriately restricted the states’ ability to use the funding as anticipated—including for past and future projects that fall within the scope of the grant programs. In its December 23 order, the Court vacated the challenged terms and entered permanent injunctive relief barring FEMA from imposing the terms.
Joining Attorney General Nessel in securing this order are the attorneys general of Arizona, Colorado, Hawai’i, Maine, Maryland, Nevada, New Mexico, North Carolina, Oregon, and Wisconsin, as well as the Governor of Kentucky.
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