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Border Report – City of San Diego sues federal government for withholding grant money aimed for public services

Posted on July 11, 2025

SAN DIEGO (Border Report) — San Diego City Attorney Heather Ferbert has filed a lawsuit against two federal agencies to protect $362 million already awarded by the federal government for public services.

In a news release issued by the city attorney, Ferbert says the funds help the city build and repair critical infrastructure, provide housing and homelessness services, and support key programs that serve families and residents across the San Diego region. 

The lawsuit, filed together with nearly 70 other cities, counties, and regional authorities across the country, challenges the federal administration’s implementation of new conditions for the continued receipt of federal grants.

According to the legal action, these conditions include certification that the city does not operate diversity, equity, and inclusion programs; compliance with federal anti-discrimination laws; cooperation with federal immigration activities; and adherence to all Executive Orders issued by the President. 


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“In light of these politically motivated and unlawful funding conditions, it is imperative that we take action to protect the critical federal grants that support our community,” said Ferbert. “These funds are essential to providing housing, maintaining infrastructure, and delivering services our residents rely on every day. We will fight to ensure San Diego continues to receive the resources it has earned and has been promised, without overreach from the federal government.” 

According to the City of San Diego, it has been awarded approximately $137 million in U.S. Department of Transportation grants and $225 million in U.S. Housing and Urban Development (HUD) grants … money that “supports a wide range of essential local programs, including affordable housing, rental assistance, and homelessness services.”

Ferbert says the funds also help the city improve libraries, parks, and community centers, subsidize childcare and energy costs, and expand clean energy efforts such as mobile EV charging for zero emissions vehicles.


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Additionally, this funding is said to be instrumental in delivering long-term capital improvement projects like bridge rehabilitation and street repairs that maintain and upgrade the city’s infrastructure. 

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