How Funding Cuts Under Trump Administration Are Affecting Denver’s Migrant Shelters

Burning hundred dollar bill with visible flames

The Trump Administration’s revocation of $24 million in funding spells trouble for Denver’s migrant shelters, highlighting growing tensions between federal and local immigration policies.

Key Takeaways

Denver lost approximately $32 million in federal grants for migrant shelters, raising concerns about local support services.
The funding cut is part of the Trump administration’s focus on strict immigration enforcement and border security.
FEMA indicated that supporting illegal immigration was against the Department of Homeland Security’s priorities.
Denver spends $80 million addressing an influx of immigrants, which could be curtailed without federal support.
Denver may need to seek alternative funding to maintain immigrant support programs.

Federal Grants Revoked

On March 11, 2023, the Trump administration rescinded approximately $32 million in grant funding for Denver. This funding was integral to supporting shelters and services for the city’s immigrant population. FEMA clarified that the awards conflicted with the Department of Homeland Security’s focus on enforcing immigration laws and were therefore inconsistent with its priorities.

Since 2023, Denver has received significant funds, yet had to halt future expenditures as FEMA could no longer support costs after March 11. Denver was using this money primarily for food, shelter, transportation, medical care, and hygiene supplies for migrants. These funds were crucial in helping the city cope with the arrival of about 43,000 immigrants over the past couple of years.

Immigration Policies at Odds

Denver, known as a sanctuary city, has its governance standing firm against federal immigration mandates, which encouraged an influx of migrants. Denver Mayor Mike Johnston has ardently opposed the Trump administration’s plans and readied for potential federal funding withdrawals. While the funding termination isn’t immediately affecting Denver’s budget because it wasn’t included in the upcoming year’s allocations, city officials remain wary of financial challenges ahead.

The city spends between $100 and $200 million annually in grants, heavily relying on federal contributions. Denver recently received notice of the funding cancellation during a City Council meeting on April 1. With the financial question looming, the city has 30 days to challenge the termination officially.

The Trump administration has rescinded $24 million in federal grants promised to the City of Denver, following through on a threat to withhold funding over the city's sheltering of newly arrived immigrants. https://t.co/7mtvBfJpvf

— KOAA News5 (@KOAA) April 30, 2025

Moving Forward

Despite this setback, Denver is assessing options to navigate this challenge. While previous instances have seen grants reinstated by court orders, there’s no assurance this will recur. Denver’s spokesperson indicated a lack of immediate impact from the funding cut, as FEMA funds were not expected this financial year.

As federal funding cuts align with the broader strategy for stricter immigration enforcement, Denver must either find alternative funding to maintain its immigrant aid services or redefine its approach to immigration issues. For now, Denver remains a place striving to balance its humanitarian commitments with federal directives.