Court order halts unlawful conditions on Health and Human Services grants which provide millions to support early childhood development, disease prevention, and mental health services
SAN FRANCISCO (August 12, 2025) — San Francisco City Attorney David Chiu issued the following statement today after U.S. District Court Judge Barbara J. Rothstein granted a Preliminary Injunction Order preventing the Federal Administration from imposing illegal conditions on federal grants from the U.S. Department of Health and Human Services (HHS) and the U.S. Department of Housing and Urban Development (HUD), in addition to U.S. Department of Transportation (DOT) grants. San Francisco and a coalition of other local governments filed the lawsuit on May 2, 2025, challenging the Federal Administration’s attempt to impose extreme political conditions on federal grants to force local governments to adopt its political agenda or risk losing critical funding.
On June 3, U.S. District Court Judge Barbara J. Rothstein issued a Preliminary Injunction Order preventing the Trump Administration from imposing illegal conditions on federal grants from DOT and the Continuum of Care grant from HUD. Plaintiffs filed an amended complaint seeking to enjoin grant conditions imposed on HHS grants and additional HUD grants on July 10. The judge extended the Preliminary Injunction to the unlawful HHS and HUD conditions on August 12.
“These grants provide billions in funding that help our city support early childhood development, critical health services, safe and effective transportation, and housing to our most vulnerable,” said City Attorney David Chiu. “These new grant conditions not only violate the Constitution, but they also have nothing to do with the purpose or performance of these grants. We are grateful the Court again ruled in our favor and blocked attempts to illegally condition these grants.”
“The grant funding at stake in this lawsuit is more important than ever in light of the unprecedented federal funding cuts the County is facing. This case is part of the County’s aggressive efforts to protect our remaining funding streams that support critical programs and services,” said Tony LoPresti, County Counsel for the County of Santa Clara. “These grants are essential for the County’s work to deliver life-saving care at our hospitals and clinics, prevent infectious disease, serve vulnerable children and families, and many other services. We will not stand by while the federal administration uses these grants as a tool to improperly expand presidential power.”
Background
HHS, HUD, and DOT issued grant agreements this year that included new conditions that are not authorized by Congress, but instead unlawfully impose President Trump’s anti-immigrant, anti-LGBTQ+, anti-choice, and anti-equity policy preferences.
San Francisco relies on approximately $325 million in active non-Medicaid and Medicare HHS grant funding, including approximately $148 million from the Administration for Children and Families, $90 million from Centers for Disease Control and Prevention, $48 million from Health Resources and Services Administration, and $19 million from Substance Abuse and Mental Health Services Administration. This funding provides financial assistance and supportive services for low-income families, foster families, and other vulnerable residents, such as refugees and asylees, those experiencing homelessness, and those suffering from mental illness or substance abuse disorders. In addition, HHS funding supports vital work to monitor, intervene, and respond to public health concerns, such as the transmission of HIV, other sexually transmitted infections, and tuberculosis.
HUD provides San Francisco approximately $240 million in HUD grant funds to expand affordable housing opportunities, provide services to maintain housing stability and reduce displacement for low- and moderate-income residents, and provide housing and emergency shelter services to homeless residents. This funding includes approximately $50 million in Continuum of Care funds to address homelessness.
The conditions have also appeared in general terms and conditions and grant agreements from departments overseen by the DOT, including the Federal Transit Administration (FTA), Federal Highway Administration (FHWA), and Federal Aviation Administration (FAA). A significant portion of federal funds committed to San Francisco come from the DOT.
The lawsuit alleges these grant conditions violate the Spending Clause, Separation of Powers, and Fifth Amendment of the Constitution as well as the Administrative Procedure Act.
The original plaintiffs are:
- King County, WA
- Pierce County, WA
- Snohomish County, WA
- San Francisco County, CA
- Santa Clara County, CA
- Boston, MA
- Columbus, OH
- New York City, NY
An additional 52 local governments and agencies joined through amended complaints. These plaintiffs include:
- Denver, CO
- Nashville-Davidson County, TN
- Pima County, AZ
- Sonoma County, CA
- Bend, OR
- Cambridge, MA
- Chicago, IL
- Culver City, CA
- Minneapolis, MN
- Pasadena, CA
- Pittsburgh, PA
- Portland, OR
- San Jose, CA
- Santa Monica, CA
- Tucson, AZ
- Wilsonville, OR
- Central Puget Sound Regional Transit Authority, WA
- Intercity Transit, WA
- San Francisco County Transportation Authority, CA
- Treasure Island Mobility Management Agency, CA
- Port of Seattle, WA
- King County Regional Homelessness Authority, WA
- Santa Monica Housing Authority, CA
- Alameda County, CA
- Albuquerque, NM
- Baltimore, MD
- Bellevue, WA
- Bellingham, WA
- Bremerton, WA
- Dane County, WI
- Eugene, OR
- Healdsburg, CA
- Hennepin County, MN
- Kitsap County, WA
- Los Angeles, CA
- Milwaukee, WI
- Milwaukee County, WI
- Multnomah County, OR
- Oakland, CA
- Pacifica, CA
- Petaluma, CA
- Ramsey County, MN
- Rochester, NY
- Rohnert Park, CA
- San Diego, CA
- San Mateo County, CA
- Santa Rosa, CA
- Watsonville, CA
- Culver City Housing Authority, CA
- Puget Sound Regional Council, WA
- Sonoma County Transportation Authority, CA
The coalition is represented by Public Rights Project (PRP), and Pacifica Law Group, who are serving as co-counsel in the case. Together, they’re supporting local governments across the country as they push back against federal abuse of power and defend their right to make decisions in the best interest of their communities.
The case is Martin Luther King, Jr. County, et al., v. Scott Turner, et al., U.S. District Court for the Western District of Washington, Case No. 2:25-cv-00814-BJR. The Order Granting Preliminary Injunction can be found here.
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