Fresno Sues Over Lost Federal Grants Due to Trump's Anti-DEI Policies

The city joins 10 other local governments in challenging the restrictions on diversity, equity, and inclusion programs.

Feb. 24, 2026 at 12:19am

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The City of Fresno has joined 10 other local cities and counties in a lawsuit against the federal government, alleging that the Trump administration's restrictions on diversity, equity, and inclusion (DEI) programs have led to the loss of millions of dollars in critical grant funding. The lawsuit claims the funding conditions are unconstitutional and exceed the government's authority.

Why it matters

This case highlights the ongoing political battle over DEI policies, with the Trump administration seeking to dismantle such programs in favor of 'merit-based' opportunities. The lawsuit could have significant implications for how federal grant money is distributed and the ability of local governments to implement DEI initiatives.

The details

The lawsuit alleges that the federal government has imposed 'vague and unauthorized conditions' on grant funding from agencies like the Department of Homeland Security, FEMA, and the Department of Justice, effectively eliminating the use of DEI policies. Fresno identifies several grants that have been threatened by the new policy, including a $297,935 Justice Assistance Grant, as well as funding for water infrastructure and firefighter safety programs.

  • In fiscal year 2024, Fresno was awarded a $297,935 Justice Assistance Grant.
  • In fiscal year 2025, Fresno declined to apply for certain DOJ grants due to the DEI and immigration-related certifications required.
  • Fresno currently has two active WaterSMART grants from the Bureau of Reclamation, one for $734,452 and another for $379,390.

The players

City of Fresno

A city in California that is joining 10 other local governments in a lawsuit against the federal government over the loss of grant funding due to Trump's anti-DEI policies.

President Donald Trump

The former president who has called DEI policies 'reverse discrimination' and has sought to dismantle such programs in favor of 'merit-based' opportunities.

Andrew Janz

The Fresno City Attorney who was authorized by the city council to join the lawsuit.

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What’s next

The plaintiffs are seeking declaratory relief establishing that the funding conditions are unlawful and unconstitutional.

The takeaway

This lawsuit highlights the ongoing political battle over DEI policies and the impact it can have on local governments' ability to access critical federal funding for public safety, public health, and environmental programs.