Recouping Funds from Sanctuary Cities Act of 2025

This bill would make “sanctuary” cities and counties return any federal money they have not yet committed to spend if, during that time, they limited sharing immigration-status information or refused lawful Department of Homeland Security requests to hold or notify about someone’s release. It defines a “sanctuary” policy as one that blocks officials from sharing citizenship or immigration information, or from honoring certain DHS detainer or release‑notification requests. Only unspent federal funds would have to be returned.

It applies to funds received starting with the fifth full fiscal year before the law takes effect, and it does not cover a specific category of federal criminal justice grants. A city can pause these paybacks if it notifies the Attorney General that it will fix its policy and then does so within 15 days.

Key points

• Who is affected: Cities and counties with “sanctuary” policies.
• What changes: They must return unspent federal funds received during the time they had those policies; one type of justice grant is excluded.
• When: Applies to funds received from the fifth full fiscal year before the law’s effective date; a short 15‑day grace period is available after notice to fix the policy.