Bay Area could lose billions if Trump cuts funding to sanctuary cities; AG Bonta says it's unlawful

Monica Madden Image
Wednesday, January 14, 2026
Bay Area could lose billions if Trump cuts funding to sanctuary cities

SAN FRANCISCO (KGO) -- President Donald Trump is escalating threats against sanctuary cities and states, saying that starting February 1, they'll lose all federal funding.

Potentially, it could mean the loss of billions of dollars that Bay Area cities receive from the federal government to help pay for things like emergency management, child support and human services.

"Starting February 1st, we're not making any payments to sanctuary cities or states having sanctuary cities because they do everything possible to protect criminals at the expense of American citizens," Trump said Tuesday in Detroit.

RELATED: Trump threatens to halt federal money next month not only to sanctuary cities but also their states

In San Francisco alone, this will mean the loss of hundreds of millions of dollars. For the last full fiscal year ending in June 2025, federal funding accounted for 6% of San Francisco's general fund, which was nearly $1 billion.

Sanctuary policies differ by city, but overall, California is a sanctuary state by law. This means state and local law enforcement generally limit cooperation with ICE and Border Patrol agents.

State leaders argue the federal government can't force local officers to enforce federal immigration law. Attorney General Rob Bonta vows to sue if cuts happen.

"We will go to court within seconds, and we will win if he does this, it's already proven unlawful. We've already won multiple times," Bonta said.

San Francisco and other cities have already litigated this issue and won during Trump's first term, and again so far in the second.

MORE: San Francisco suing Trump administration over sanctuary city policies

"I'm frustrated, I'm more than frustrated, I'm angry," Bonta said. "I'm pissed off that we have a president that's attacking my people, that's attacking my state, our future, our progress, our values."

Oakland Mayor Barbara Lee said in a statement:

"Oakland's sanctuary policies ensure all residents can report crimes, access services and trust local government without fear, and no threat from Washington will change that."

As for what's next, it depends on what directive comes from the White House.

ABC7 News asked the White House if there was an executive order or any actionable directives about stripping these funds, but the White House just referred to the president's earlier remarks.

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