Trump redirects anti-terrorism funds to Republican states.

WASHINGTON, October 16 (Reuters) - The Trump administration plans to transfer counterterrorism funding from Democratic-led states to Republican-led states, government records show, as it reviews a $1 billion program created after the September 11 attacks.

Twelve states led by Democrats are suing to block the cuts, alleging that the Trump administration is trying to punish them for not cooperating with federal immigration agents.

The Trump administration released estimates late in the American summer about how much money each state should expect to receive from the program. But it later revised the totals, according to notifications states received in late September from the Federal Emergency Management Agency. Wisconsin, North Carolina, and Ohio, where Trump won in 2024, saw the largest percentage increase among the states, according to federal records analyzed by Reuters.

Washington, D.C., Illinois, and New Jersey, states heavily inclined toward the Democratic Party, registered particularly sharp declines, with the total cut in Washington being 70%, Illinois 69%, and New Jersey 49%, compared to what the government had previously predicted. California also lost 31%.

The administration says it's false to suggest that the changes are political.

A spokesperson for the U.S. Department of Homeland Security, which oversees FEMA, said in a statement that the new funding totals give “greater weight” to threats from transnational organized crime, defined as criminal organizations that operate across international borders. They are also responsible for “illegal border crossings,” the spokesperson said.

The U.S. Congress created the program, called Homeland Security Grants, after the attacks of September 11, 2001, to help states and cities prevent terrorism and other violent threats.

Although the spending represents only a fraction of the money states receive from the federal government each year, this is the latest example of how the Trump administration has changed the way routine funding is distributed to states the president lost in the 2024 election. In recent weeks, Trump has also cut billions of dollars in funding for energy and infrastructure in Democratic states, including New York and California, fulfilling his threat to target those states during the US government shutdown.

“It is completely false to suggest that these changes are arbitrary or politically motivated,” said a DHS spokesperson. “Adjustments to compensation amounts follow a methodical, risk-based analysis aimed at ensuring that every dollar spent generates the maximum benefit for the American people.”

But Trump linked the funding decisions to politics, saying last week, in the context of the government shutdown: "We're just cutting Democratic programs."

A federal judge in Rhode Island temporarily blocked the Trump administration from distributing the money until the lawsuit in 12 Democratic-led states was decided. On October 7, the Trump administration asked the judge to reconsider her order.

New York, one of the states that filed the lawsuit, initially faced a 77% funding cut, but on October 3, Trump announced he had reversed the measure. He did not explain why. The DHS declined to comment on how the change would affect funding for other states.

California would lose $55 million if the cuts are made.

Since the September 11 attacks, Congress has created several grant programs to help states prevent terrorism, including $266 million to protect ports, protect public transportation systems, and protect against cyberattacks. During Trump's first term, Congress also created a fund to protect nonprofit organizations and places of worship from terrorist attacks.

FEMA requires states with "high-risk urban areas," defined as cities with a higher probability of terrorist attacks, to spend a portion of the Homeland Security Grants Program funds on state facilities that collect, analyze, and share crime information with the federal government.

Washington, D.C., used the funding in previous years to upgrade its emergency communications equipment. New York used the money to fund its 12 certified bomb squads and pay intelligence analysts for the New York City Police Department, Governor Kathy Hochul said in a statement. Illinois planned to use this year's funding to monitor cargo traffic at O'Hare Airport and curb the flow of illegal drugs, it said in a statement filed with the court as part of the lawsuit brought by 12 Democratic-led states.

If the changes go into effect, California will lose $55 million in funding. The state is scheduled to host Super Bowl LX and several FIFA World Cup matches next year. Los Angeles will host the Olympics in 2028.

Trump signed a bill in March that allocates $1,6 billion for security, planning, and other costs related to the Games and the World Cup.

Florida would see a 76% increase in its grant funds with the Trump administration's changes.

Some states that voted against Trump in 2024 saw increases, including New Mexico, Colorado, Maryland, and Oregon.

The law requires FEMA to allocate a portion of its funding to each state. FEMA must take into account the threats and vulnerabilities faced by each state and city when spending the remainder, according to the law. The agency stated in July that it would require states to allocate some of their funds to help the government detain migrants. The law gave states about two weeks to complete the detailed funding requirements. In previous years, state officials had months to complete the forms.

Reporting by Courtney Rozen and Jason Lange; editing by Chris Sanders and Claudia Parsons.