US warns states they could lose transportation funding over immigration, DEI policies

WASHINGTON, April 24 (Reuters) - The Trump administration said Thursday states could lose federal transportation funding over failing to cooperate on federal immigration enforcement efforts or for diversity, equity, and inclusion programs.

U.S. Transportation Secretary Sean Duffy told states and other grant recipients in a letter that recipients of USDOT financial assistance must ensure personnel practices are merit-based.

In March, a federal appeals court said the Trump administration could temporarily ban DEI programs at federal agencies and businesses with government contracts, which had been blocked by a lower court.