{"id":445649,"date":"2026-08-28T01:14:12","date_gmt":"2026-08-28T01:14:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/445649\/"},"modified":"2026-08-28T01:14:12","modified_gmt":"2026-08-28T01:14:12","slug":"santa-clara-county-court-victory-keeps-millions-in-federal-funds","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/445649\/","title":{"rendered":"Santa Clara County court victory keeps millions in federal funds"},"content":{"rendered":"<p>Millions of dollars will be preserved for Santa Clara County after an appeals court backed the county-led lawsuit against President Donald Trump\u2019s administration for imposing politically motivated restrictions on federal grants.<\/p>\n<p>The Ninth U.S. Circuit Court of Appeals on Tuesday affirmed a lower court decision that temporarily suspended the federal government from tying conditions onto grants to align with Trump\u2019s policy agenda. That includes the federal government trying to prohibit programs from supporting immigrants, abortion and diversity, equity and inclusion initiatives. Santa Clara County, San Francisco and more than 70 local governments sued the Trump administration on May 2, 2025.<\/p>\n<p>The decision blocks the U.S. Department of Transportation (DOT) and Housing and Urban Development (HUD) from imposing these requirements in the case known as Martin Luther King, Jr. County v. Scott Turner. The county received approximately $140 million in DOT grants and $45 million from HUD in fiscal year 2024-25. These grants preserve funding for transportation projects, community development, homelessness and more.<\/p>\n<p>County Counsel Tony LoPresti said this ruling confirms the Trump administration cannot use federal grants to impose its ideological preferences on local governments.<\/p>\n<p>\u201cBy preserving the lower court\u2019s injunction, the ruling allows the county to continue to access and use federal HUD and DOT funding to provide critical housing, homelessness prevention and infrastructure services without a sword hanging over its head that the administration might cancel the grant or take enforcement action against the county based on supposed non-compliance with illegal requirements,\u201d LoPresti told San Jos\u00e9 Spotlight.<\/p>\n<p>Jill Habig, founder of Public Rights Project which represents the coalition of local governments involved in this case, said this is a victory for the people. The ruling shows the limits of the government\u2019s authority to circumvent congressional procedures.<\/p>\n<p>\u201cOur win shows what local governments can do when they push back together,\u201d Habig said in a statement. \u201cThe federal government can\u2019t hold funding hostage to force local governments to abandon lawful policies. We\u2019re talking about taxpayer dollars that provide housing, transportation, public health and other essential services.\u201d<\/p>\n<p>This is one of a dozen lawsuits the county has filed against the Trump administration. In June, the county sued the government to stop the <a href=\"https:\/\/sanjosespotlight.com\/feds-say-south-county-ice-facility-will-hold-10-detainees\/\" rel=\"nofollow noopener\" target=\"_blank\">planned U.S. Immigration and Customs Enforcement (ICE) facility<\/a> in Gilroy. <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-sues-to-stop-planned-ice-facility\/\" rel=\"nofollow noopener\" target=\"_blank\">The lawsuit<\/a> alleges the federal government illegally bypassed environmental laws, local zoning rules and other statutes in advancing the project. Federal officials agreed to temporarily halt the work until the Sept. 8 hearing takes place.<\/p>\n<p>Last December, the county, San Francisco and other local governments and nonprofits <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-sues-over-federal-housing-grant-changes\/\" rel=\"nofollow noopener\" target=\"_blank\">sued the federal administration<\/a> in its attempt to upend grants dedicated to permanent housing programs. A judge <a href=\"https:\/\/sanjosespotlight.com\/federal-judge-pauses-changes-to-santa-clara-county-housing-grants\/\" rel=\"nofollow noopener\" target=\"_blank\">halted HUD<\/a>\u00a0from stripping permanent housing funds and moving it to temporary housing programs. On Aug. 7, the courts ruled the administration\u2019s actions were unlawful.<\/p>\n<p><a href=\"https:\/\/cta-na2.hubspot.com\/web-interactives\/public\/v1\/track\/redirect?encryptedPayload=AVxigLLpG94agKIRKh43RT9zHzDdhm5RE9S0UfmUoKu2g41I464ysR6ItJM2dnlYbhYli6FiL%2F%2BDwRP6ky7NwbDQRZuxLg6MnZHAwxwxqFIHzB7utss%3D&amp;webInteractiveContentId=321838904008&amp;portalId=44356355\" target=\"_blank\" rel=\"noopener nofollow\"><img decoding=\"async\" class=\"aligncenter\" style=\"height: 100%; width: 100%; object-fit: fill;\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/interactive-321838904008.png\" alt=\"In-line Donation CTA 2026 (950 x 287 px)\"\/><\/a><\/p>\n<p>Other actions the county has initiated against the Trump administration include a lawsuit to block an executive order ending <a href=\"https:\/\/sanjosespotlight.com\/santa-clara-county-files-lawsuit-over-birthright-citizenship\/\" rel=\"nofollow noopener\" target=\"_blank\">birthright citizenship<\/a> and suing Trump after he issued executive orders to deny federal funding to \u201csanctuary\u201d cities, which protects immigrants by limiting local cooperation with federal immigration agents. The county has won favorable rulings in multiple cases.<\/p>\n<p>Trump\u2019s actions are putting $3.6 billion of federal funding at risk in the county every year, according to estimates previously provided by county officials. One case has protected $48 million in federal homeless funds, keeping more than 1,800 county residents housed.<\/p>\n<p>\u201cThe court\u2019s decision this week confirms that the federal administration cannot put housing and transportation services at risk by holding hostage funding that doesn\u2019t align with their agenda,\u201d Santa Clara County Supervisor Betty Duong told San Jos\u00e9 Spotlight. \u201cThat is not how American democracy works and our county will continue upholding our values, protecting the critical services our residents depend on, and ensuring every community can live with dignity.\u201d<\/p>\n<p>Contact Joyce Chu at <a href=\"https:\/\/sanjosespotlight.com\/cdn-cgi\/l\/email-protection\" class=\"__cf_email__\" data-cfemail=\"4b212432282e0b382a252124382e383b243f27222c233f65282426\" rel=\"nofollow noopener\" target=\"_blank\">[email\u00a0protected]<\/a> or @joyce_speaks.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Millions of dollars will be preserved for Santa Clara County after an appeals court backed the county-led lawsuit&hellip;\n","protected":false},"author":2,"featured_media":364376,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[712,88,90,89],"class_list":["post-445649","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-jose","tag-centerpiece","tag-san-jose","tag-san-jose-headlines","tag-san-jose-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/445649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=445649"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/445649\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/364376"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=445649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=445649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=445649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}