Overview
- On Jan. 13, the Justice Department asked the First Circuit to dismiss the government’s appeal, effectively conceding the case in favor of California and 20 other plaintiff states, pending court approval.
- The November 4, 2025 final judgment by Chief U.S. District Judge John McConnell permanently enjoined the administration from tying Department of Transportation grants to immigration cooperation and vacated those conditions across DOT programs.
- California led the 21‑state lawsuit filed in May after an April 2025 DOT letter threatened to withhold billions in transportation funding from states that would not assist federal immigration enforcement.
- DOT had already withheld $40 million and canceled $160 million in California highway funds tied to English‑proficiency rules and Commercial Driver’s License cancellations, and the department did not say whether those funds will be restored or explain why it dropped the appeal.
- A D.C. appeals panel later found the administration’s reasoning inadequate and noted evidence undercut a key safety claim, even as Transportation Secretary Sean Duffy defended the policy on public‑safety grounds.