In a week marked by political drama and high-stakes legal maneuvering, President Donald Trump announced on Friday, October 3, 2025, that his administration would restore $187 million in federal Homeland Security and counterterrorism funding to New York City and State—funds his own administration had moved to cut just days before. The abrupt reversal came after a flurry of lawsuits, public outcry from New York officials, and a temporary block by a federal judge, shining a spotlight on the tense relationship between the White House and so-called 'sanctuary' jurisdictions.
The saga began on Saturday, September 27, when the Department of Homeland Security (DHS) announced it would slash $100 million in federal homeland security funding to New York, piling on top of an $87 million reduction revealed in August. The cuts, which directly threatened the budgets of the New York City Police Department (NYPD), Fire Department (FDNY), and state law enforcement agencies, were widely interpreted as retaliation for New York's refusal to cooperate with the Trump administration's deportation program. According to The New York Times, the funding reductions were enacted under a day-one executive order from President Trump, directing Homeland Security Secretary Kristi Noem to ensure that 'sanctuary' jurisdictions would not have access to federal funds.
Governor Kathy Hochul, a Democrat, wasted no time in responding. Calling the move 'dangerous' and 'politically motivated,' she led a coalition of states in filing a lawsuit on Monday, September 29, seeking to claw back the funding. The legal action alleged that the cuts were a form of political payback for New York's stance on immigration enforcement. By Tuesday, September 30, a federal judge had temporarily blocked the DHS funding reductions, citing the critical importance of homeland security resources in a city that remains, in the words of NYPD Commissioner Jessica Tisch, 'the number one terrorist target in the world.'
Judge Lewis A. Kaplan, in his Wednesday ruling, underscored the gravity of the threat facing New York. Citing the September 11 attacks, the 1993 World Trade Center bombing, and ongoing global instability, Kaplan wrote, 'Obviously, New York is no stranger to risks of terrorist attacks and it’s not just 9/11 that tells us that.' He noted the state's likely success in proving that the funding was improperly diverted as punishment for its immigration policies. The temporary restraining order is set to remain in place until October 15, while the court considers a permanent injunction.
State officials, meanwhile, did not mince words about the impact of the proposed cuts. Governor Hochul described the funding reductions as 'political payback and an attack on New York and its residents.' NYPD Commissioner Tisch warned that 'cutting these resources now, in a time of global conflict and surging threats, puts lives at risk and will make our city meaningfully less safe.' She added, 'To be blunt, this is the difference between a city that prevents the next attack and a city left exposed to it.'
Representative Mike Lawler, a Republican who represents a competitive district in New York, echoed the bipartisan alarm. 'From day one, I made clear that these cuts were unacceptable and posed a direct threat to the safety of New Yorkers,' Lawler said. 'This is a major win for our state and a testament to what we can achieve when we work together to push back on misguided decisions. I would like to thank President Trump for listening to us, working with us, and delivering for our state, ensuring that New York continues to receive the necessary resources to defend against terrorism.'
In a dramatic twist, President Trump himself appeared to be unaware of the funding cuts until Governor Hochul called him to object on Sunday, September 28. According to The New York Times and CNN, Trump 'exploded in anger' upon learning of the situation and promptly ordered the funds restored. On Friday, he took to Truth Social to announce the reversal: 'I am pleased to advise that I reversed the cuts made to Homeland Security and Counterterrorism for New York City and State. It was my Honor to do so. Thank you for your attention to this matter! President DJT.'
Governor Hochul welcomed the announcement, posting on X (formerly Twitter), 'From the moment @Sec_Noem tried to defund our police and counterterrorism programs, we stood up and fought back. I’m glad that @POTUS heard our call to reverse these cuts.' She added, 'That means $187 million for the NYPD, FDNY & first responders across the state that keep New Yorkers safe.' Commissioner Tisch celebrated the outcome as well: 'This reversal ensures that the women and men of the NYPD will continue to have the resources that they need to keep the city safe from terrorism.'
But the funding fight is only one chapter in a broader conflict between the Trump administration and New York's leaders. On Wednesday, October 1, the administration announced it was freezing $18 billion in federal funding for infrastructure projects in New York City, including the Hudson Tunnel Project and the Second Avenue Subway, citing concerns about diversity, equity, and inclusion policies. The administration also canceled nearly $8 billion in funding for green energy projects affecting New York and more than a dozen other states. Russell Vought, the White House’s budget chief, confirmed that the infrastructure funding pause was tied to the ongoing government shutdown, but the counterterrorism cuts predated the shutdown and appeared rooted in the administration's stance on immigration enforcement.
For now, the restoration of homeland security funds is being hailed as a victory for bipartisan cooperation and public safety. 'Because of our efforts, $187 million in critical funding will be restored — a victory for public safety and for every New Yorker who depends on our brave law enforcement and first responders to keep our state secure,' Hochul said. Still, the episode has left many wondering about the stability of federal support for essential security programs in an era of deep political division and shifting policy priorities.
As the city and state move forward, the temporary restraining order on transit security funding remains in effect until mid-October, and further legal battles may loom. For now, New Yorkers can breathe a little easier knowing that, at least for the moment, their city’s first responders and law enforcement agencies have the resources they need to keep the city safe from ever-evolving threats.
