A federal court has granted the City and County of Denver a preliminary injunction in its lawsuit against the Trump Administration over threats to withhold millions of dollars in federal transportation grant funding.

“Denver follows all laws – federal, state, and local – and it should not be so much to ask the White House to do the same,” said Mayor Mike Johnston. “We appreciate the court’s swift and precise ruling protecting the federal funding that Denverites deserve.”

In its ruling, issued Tuesday, the court said the Trump administration “is likely acting in violation of the Separation of Powers principle as related to Congress’s role in appropriating funding and that the Trump Administration has failed to provide reasonable explanations for the new funding conditions.

The court also wrote that the threat alone of a loss of funds to cities and counties constitutes harm. “It is this looming risk itself that is the injury, and one that Plaintiffs are already suffering. Courts evaluating similar circumstances have recognized that this injury of acute budgetary uncertainty is irreparable.”

U.S. Department of Transportation Secretary Sean Duffy warned in April that federal funding recipients could lose taxpayer dollars if they do not align with the president’s stance on diversity, equity, and inclusion programs or assist in enforcing federal immigration policy.

“As recipients of such DOT funds, you have entered into legally enforceable agreements with the United States Government and are obligated to comply fully with all applicable Federal laws and regulations,” Duffy wrote. “These laws and regulations include the United States Constitution, Federal statutes, applicable rules, and public policy requirements, including, among others, those protecting free speech and religious liberty and those prohibiting discrimination and enforcing controls on illegal immigration. As Secretary of Transportation, I am responsible for ensuring recipients of DOT financial assistance are aware of and comply with all applicable legal obligations.”

Duffy added that adherence to “legal obligations” is a prerequisite for federal financial assistance and that noncompliance “will jeopardize your continued receipt of Federal financial assistance from DOT and could lead to a loss of Federal funding from DOT.”

Almost half a billion dollars in funding hangs in the balance between Denver’s Department of Transportation and Infrastructure (DOTI) and Denver International Airport.

A statement from Johnston’s office said DOTI is currently the recipient of a collective $300 million in federal funding and would not be able to support the city’s critical needs if it were to lose existing funding or the ability to apply for new grants.

DIA also relies on substantial federal support through both entitlement and discretionary grants, authorized by Congress and distributed by the Federal Aviation Administration.

For federal fiscal years 2022- 2024, the FAA issued approximately $310 million in grant funds to DIA.

Denver is expected to be eligible for an additional approximately $267 million in FAA grants for the 2025-2028 period, which would support critical airport infrastructure and safety projects at the nation’s third busiest airport.

City officials argue the Trump Administration does not have the authority to make grants contingent on either DEI or immigration without action from Congress, which has not occurred.