Case: City of Chicago v. Department of Homeland Security

1:25-cv-05463 | U.S. District Court for the Northern District of Illinois

Filed Date: May 16, 2025

Case Ongoing

Clearinghouse coding complete

Case Summary

This case challenges the Federal Emergency Management Agency’s (FEMA) termination of funding for the Shelter and Services Program (SSP). SSP was a congressional initiative established to reimburse local governments for providing humanitarian assistance—including food, shelter, and medical care—to migrants processed and released by the U.S. Department of Homeland Security (DHS).  On February 10, 2025, FEMA allegedly halted all SSP funding without prior notice by “de-obligating” the funds. This a…

This case challenges the Federal Emergency Management Agency’s (FEMA) termination of funding for the Shelter and Services Program (SSP).

SSP was a congressional initiative established to reimburse local governments for providing humanitarian assistance—including food, shelter, and medical care—to migrants processed and released by the U.S. Department of Homeland Security (DHS). 

On February 10, 2025, FEMA allegedly halted all SSP funding without prior notice by “de-obligating” the funds. This abrupt termination allegedly followed public criticism of FEMA by Elon Musk, who accused the agency of violating executive orders by funding services for “ill_egals,” as well as public remarks from then-Acting FEMA Administrator Cameron Hamilton, who stated that “Congress should have never passed bills asking FEMA to do this work.” FEMA allegedly provided no initial explanation for its decision, later claimed it was conducting an “investigation” into whether grantees were unlawfully harboring migrants, and ultimately asserted that SSP grants no longer aligned with its “new priorities.” 

On May 16, 2025, the City of Chicago, the City and County of Denver, and Pima County filed this lawsuit in the U.S. District Court for the Northern District of Illinois. Plaintiffs brought claims under the Administrative Procedure Act and the Separation of Powers against DHS and its Secretary, as well as FEMA and its Acting Administrator. Judge Matthew F. Kennelly was assigned to the case. 

Represented by public counsel, plaintiffs sought declaratory and injunctive relief, asking the court to declare defendants’ termination of SSP funding unlawful, to set aside the agency’s termination decision, and to enjoin DHS and FEMA from reallocating SSP funds to immigration detention or any other unrelated uses. They further requested that FEMA be compelled to resume processing reimbursement requests for services already provided. 

Plaintiffs asserted three primary claims. First, they alleged that FEMA’s termination of SSP funding violated the Administrative Procedure Act as arbitrary and capricious, citing FEMA’s shifting and inconsistent justifications. Second, they argued that FEMA violated the Administrative Procedure Act’s procedural requirements by failing to conduct notice-and-comment rulemaking before altering or terminating the program. Third, they claimed FEMA acted ultra vires and infringed Congress’s exclusive spending power under the Spending Clause and separation of powers by unilaterally nullifying a congressional appropriation.

On June 20, 2025, plaintiffs moved for a preliminary injunction, arguing that FEMA’s actions were arbitrary and procedurally invalid under the Administrative Procedure Act, that FEMA lacked authority to terminate SSP and redirect its funds, and that its actions caused irreparable harm, including budget shortfalls, disruption of migrant services, and harm to principles of cooperative federalism.


Then, on July 12, 2025, plaintiffs moved for a temporary restraining order after obtaining evidence that DHS intended to imminently divert SSP funds to U.S. Immigration and Customs Enforcement (ICE) and to the State of Florida for construction of a new immigration detention facility known as “Alligator Alcatraz.” Plaintiffs cited public statements from Secretary Noem, a DHS official, and Senator Chris Murphy indicating that DHS was preparing to reallocate the funds before their claims could be adjudicated. Plaintiffs argued that diversion of the funds would irreparably harm them by rendering their claims moot and permanently depriving them of reimbursement.

On July 15, 2025, Judge Kennelly denied the plaintiffs' motion for a temporary restraining order, and the court's previously entered order that temporarily prohibited DHS and FEMA from reallocating certain SSP funds was vacated

This case is ongoing.

Summary Authors

Victoria Tan (7/21/2025)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/70282725/parties/city-of-chicago-v-department-of-homeland-security/


Judge(s)
Attorney for Plaintiff

Brown, Samuel E (Illinois)

Johnson, Kyle (Illinois)

Kane, Stephen J (Illinois)

Attorney for Defendant

Johnson, Patrick Walter (Illinois)

Expert/Monitor/Master/Other

Forero-Norena, Mateo (Illinois)

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Documents in the Clearinghouse

Document
1

1:25-cv-05463

Complaint

May 16, 2025

May 16, 2025

Complaint
28

1:25-cv-05463

Memorandum in Support of Plaintiffs' Motion for a Preliminary Injunction

June 20, 2025

June 20, 2025

Pleading / Motion / Brief
32

1:25-cv-05463

Memorandum in Support of Plaintiffs' Motion for a Temporary Restraining Order

July 12, 2025

July 12, 2025

Pleading / Motion / Brief
36

1:25-cv-05463

Notification of Docket Entry

July 15, 2025

July 15, 2025

Other

Resources

Docket

See docket on RECAP: https://www.courtlistener.com/docket/70282725/city-of-chicago-v-department-of-homeland-security/

Last updated Aug. 21, 2025, 12:15 p.m.

ECF Number Description Date Link Date / Link
1

COMPLAINT filed by City Of Chicago, Pima County, City and County of Denver; Filing fee $ 405, receipt number AILNDC-23495643.(Prather, Lucy) (Entered: 05/16/2025)

May 16, 2025

May 16, 2025

Clearinghouse
2

ATTORNEY Appearance for Plaintiff City Of Chicago by Lucy Prather (Prather, Lucy) (Entered: 05/16/2025)

May 16, 2025

May 16, 2025

PACER
3

CIVIL Cover Sheet (Prather, Lucy) (Entered: 05/16/2025)

May 16, 2025

May 16, 2025

PACER
4

ATTORNEY Appearance for Plaintiff City Of Chicago by Stephen J Kane (Kane, Stephen) (Entered: 05/16/2025)

May 16, 2025

May 16, 2025

PACER

case assigned

May 16, 2025

May 16, 2025

PACER

CASE ASSIGNED to the Honorable Matthew F. Kennelly. Designated as Magistrate Judge the Honorable Jeffrey T. Gilbert. Case assignment: Random assignment. (Civil Category 2). (cvk, )

May 16, 2025

May 16, 2025

PACER
10

SUMMONS Issued (Court Participant) as to Department of Homeland Security, Federal Emergency Management Agency, Kristi Noem, David Richardson, U.S. Attorney, and U.S. Attorney General (Attachments: # 1 Summons Issued, # 2 Summons Issued, # 3 Summons Issued)(mam, ) (Entered: 05/20/2025)

May 20, 2025

May 20, 2025

PACER
11

MOTION by Plaintiff City and County of Denver for leave to appear as Pro Hac Vice (Mulbarger, Matthew) (Entered: 05/29/2025)

May 29, 2025

May 29, 2025

PACER
12

MINUTE entry before the Honorable Matthew F. Kennelly: Motion by Matthew Mulbarger for leave to appear pro hac vice 11 is granted. In addition, the Court sets this case for an initial telephonic status hearing on 6/5/2025 at 9:10 AM, using call-in number 650-479-3207, access code 2305-915-8729. Plaintiffs are directed to file a status report on 6/3/2025. (mk) (Entered: 05/30/2025)

May 30, 2025

May 30, 2025

PACER
13

SUMMONS Returned Executed by City Of Chicago, Pima County, City and County of Denver as to Department of Homeland Security served on 6/2/2025, answer due 8/1/2025 (Prather, Lucy) (Entered: 06/03/2025)

June 3, 2025

June 3, 2025

PACER
14

SUMMONS Returned Executed by City Of Chicago, Pima County, City and County of Denver as to Federal Emergency Management Agency served on 6/2/2025, answer due 8/1/2025 (Prather, Lucy) (Entered: 06/03/2025)

June 3, 2025

June 3, 2025

PACER
15

SUMMONS Returned Executed by City Of Chicago, Pima County, City and County of Denver as to David Richardson served on 6/2/2025, answer due 8/1/2025 (Prather, Lucy) (Entered: 06/03/2025)

June 3, 2025

June 3, 2025

PACER
16

SUMMONS Returned Executed by City Of Chicago, Pima County, City and County of Denver as to Kristi Noem served on 6/2/2025, answer due 8/1/2025 (Prather, Lucy) (Entered: 06/03/2025)

June 3, 2025

June 3, 2025

PACER
17

STATUS Report pursuant to the Court's May 30 Order by City Of Chicago, City and County of Denver, Pima County (Prather, Lucy) (Entered: 06/03/2025)

June 3, 2025

June 3, 2025

RECAP
18

MINUTE entry before the Honorable Matthew F. Kennelly: The Court has reviewed plaintiff's status report. Based on plaintiff's statement that they intend to file a motion for preliminary injunction by 6/16/2025, the telephonic status hearing set for 6/5/2025 is vacated and reset to 6/18/2025 at 9:10 AM, using call-in number 650-479-3207, access code 2305-915-8729. (mk) (Entered: 06/03/2025)

June 3, 2025

June 3, 2025

PACER
19

MOTION by Plaintiffs City Of Chicago, City and County of Denver, Pima County for leave to file excess pages (Prather, Lucy) (Entered: 06/12/2025)

June 12, 2025

June 12, 2025

PACER
20

DESIGNATION of Thomas P. Walsh as U.S. Attorney for Defendants Department of Homeland Security, Federal Emergency Management Agency, Kristi Noem, David Richardson (Walsh, Thomas) (Entered: 06/12/2025)

June 12, 2025

June 12, 2025

PACER
21

DESIGNATION of Patrick Walter Johnson as U.S. Attorney for Defendants Department of Homeland Security, Federal Emergency Management Agency, Kristi Noem, David Richardson (Johnson, Patrick) (Entered: 06/12/2025)

June 12, 2025

June 12, 2025

PACER
22

MINUTE entry before the Honorable Matthew F. Kennelly: Plaintiffs' motion for leave to file a preliminary injunction memorandum of up to 30 pages 19 is granted. Plaintiffs' preliminary injunction motion and supporting materials are to be filed by 6/20/2025. The telephonic status hearing set for 6/18/2025 is vacated and reset to 6/23/2025 at 9:10 AM, using call-in number 650-479-3207, access code 2305-915-8729. (mk) (Entered: 06/13/2025)

June 13, 2025

June 13, 2025

PACER
23

MOTION for Leave to Appear Pro Hac Vice on behalf of Pima County by Samuel E Brown; Filing fee $ 150, receipt number AILNDC-23640304. (Brown, Samuel) (Entered: 06/18/2025)

June 18, 2025

June 18, 2025

PACER
24

MOTION for Leave to Appear Pro Hac Vice on behalf of Pima County by Bobby Huo Yu; Filing fee $ 150, receipt number AILNDC-23640549. (Yu, Bobby) (Entered: 06/18/2025)

June 18, 2025

June 18, 2025

PACER
25

MOTION for Leave to Appear Pro Hac Vice on behalf of Pima County by Kyle Johnson; Filing fee $ 150, receipt number AILNDC-23640597. (Johnson, Kyle) (Entered: 06/18/2025)

June 18, 2025

June 18, 2025

PACER
26

MINUTE entry before the Honorable Matthew F. Kennelly: Motions by Samuel Brown 23, Bobby Yu 24, and Kyle Johnson 24 to appear pro hac vice are granted. (mk) (Entered: 06/19/2025)

June 19, 2025

June 19, 2025

PACER
27

MOTION by Plaintiffs City Of Chicago, City and County of Denver, Pima County for preliminary injunction (Prather, Lucy) (Entered: 06/20/2025)

June 20, 2025

June 20, 2025

RECAP
28

MEMORANDUM by City Of Chicago, City and County of Denver, Pima County in support of motion for preliminary injunction 27 (Attachments: # 1 Declaration Jose Ponce, # 2 Declaration Ken Walker, # 3 Declaration Mary Comans, # 4 Declaration Nicole Doheny, # 5 Declaration Annette Guzman)(Prather, Lucy) (Entered: 06/20/2025)

1 Declaration Jose Ponce

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2 Declaration Ken Walker

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3 Declaration Mary Comans

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4 Declaration Nicole Doheny

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5 Declaration Annette Guzman

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June 20, 2025

June 20, 2025

Clearinghouse
29

DECLARATION of Lucy Prather regarding motion for preliminary injunction 27, memorandum in support of motion, 28 (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17)(Prather, Lucy) (Entered: 06/20/2025)

1 Exhibit 1

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2 Exhibit 2

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3 Exhibit 3

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4 Exhibit 4

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5 Exhibit 5

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6 Exhibit 6

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7 Exhibit 7

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8 Exhibit 8

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9 Exhibit 9

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10 Exhibit 10

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11 Exhibit 11

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12 Exhibit 12

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13 Exhibit 13

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14 Exhibit 14

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15 Exhibit 15

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16 Exhibit 16

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17 Exhibit 17

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June 20, 2025

June 20, 2025

RECAP
30

MINUTE entry before the Honorable Matthew F. Kennelly: Telephonic status hearing held on 6/23/2025. Defendants' response to the motion for preliminary injunction 27 is due 7/23/2025. Defendants have leave to file a 30-page response brief. The plaintiff's reply is due 8/6/2025. The case is set for a telephonic status hearing on 8/13/2025 at 8:50 a.m. The following call-in number will be used for the hearing: 650-479-3207; access code 2305-915-8729. Persons granted remote access to proceedings are reminded of the general prohibition against photographing, recording, and rebroadcasting of court proceedings. Violation of these prohibitions may result in sanctions, including removal of court issued media credentials, restricted entry to future hearings, denial of entry to future hearings, or any other sanctions deemed necessary by the Court. Mailed notice. (mma, ) (Entered: 06/23/2025)

June 23, 2025

June 23, 2025

RECAP
31

MOTION by Plaintiffs City Of Chicago, City and County of Denver, Pima County for temporary restraining order (Prather, Lucy) (Entered: 07/12/2025)

July 12, 2025

July 12, 2025

RECAP
32

MEMORANDUM by City Of Chicago, City and County of Denver, Pima County in support of motion for temporary restraining order 31 (Prather, Lucy) (Entered: 07/12/2025)

July 12, 2025

July 12, 2025

RECAP
33

DECLARATION of Lucy Prather regarding memorandum in support of motion 32, motion for temporary restraining order 31 (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10)(Prather, Lucy) (Entered: 07/12/2025)

July 12, 2025

July 12, 2025

PACER
34

MINUTE entry before the Honorable Matthew F. Kennelly: This order is entered at approximately 9:25 PM Central Time on July 12, 2025. The plaintiffs in this case filed late this afternoon an emergency motion for a temporary restraining order seeking emergency relief on an ex parte basis. The motion has been served upon defendants via CM/ECF. The motion and supporting materials support a finding that defendants are likely, prior to the hearing on the preliminary injunction in this case, to effectively render the case moot, by reprogramming, transferring, de-obligating, or otherwise eliminating, the Shelter and Services Program grants to the plaintiffs (and others). This would cause irreparable injury to the plaintiffs. Plaintiffs' motions and supporting materials also indicate that the reprogramming, transferring, de-obligating, or elimination of these funds may take place over this weekend, when the Court is not in session, or otherwise before a hearing may be held. Plaintiffs have provided via affidavit specific facts clearly showing that immediate and irreparable injury will result to plaintiffs before defendants can be heard in opposition, and plaintiffs have also certified (and the docket reflects) that plaintiffs have attempted to obtain assurances from defendants and have given notice to defendants of their anticipated and actual filing of the motion for a temporary restraining order. See Fed. R. Civ. P. 65(b). For these reasons, the Court bars the defendants, as well as their officers, agents, servants, employees, and attorneys, from reprogramming, transferring, de-obligating, or otherwise eliminating, Shelter and Services program funds directly or indirectly (via pass-throughs) awarded or issued to the plaintiffs in this case. This order will expire at 5:00 PM Central Time on Wednesday, July 16, 2025 unless extended by the Court. Defendants are directed to file a written response to plaintiff's motion for a temporary restraining order by 3:00 PM Central Time on Monday, July 14, 2025. An in-person hearing regarding whether the present temporary restraining order should be extended, and whether the briefing schedule on the motion for preliminary injunction should be advanced, is set for Tuesday, July 15, 2025 at 10:00 AM in Courtroom 2103. (mk) (Entered: 07/12/2025)

July 12, 2025

July 12, 2025

RECAP
35

RESPONSE by Department of Homeland Securityin Opposition to MOTION by Plaintiffs City Of Chicago, City and County of Denver, Pima County for temporary restraining order 31 (Attachments: # 1 Exhibit A)(Johnson, Patrick) (Entered: 07/14/2025)

1 Exhibit A

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July 14, 2025

July 14, 2025

RECAP
36

MINUTE entry before the Honorable Matthew F. Kennelly: In person motion hearing held on 7/15/2025. The plaintiffs' motion for temporary restraining order 31 is denied for the reasons stated in open court. The Court's previously entered order barring the defendants, as well as their officers, agents, servants, employees, and attorneys, from reprogramming, transferring, de-obligating, or otherwise eliminating, Shelter and Services program funds directly or indirectly (via pass-throughs) awarded or issued to the plaintiffs in this case is vacated for the reasons stated in open court. The deadline for the defendant's response to the motion for preliminary injunction 27 is extended to 7/30/2025; the deadline for the plaintiff's reply is extended to 8/13/2025. The telephonic status hearing set for 8/13/2025 is vacated and reset to 8/20/2025 at 9:00 a.m. The following call-in number will be used for the hearing: 650-479-3207; access code 2305-915-8729. Mailed notice. (mma, ) (Entered: 07/15/2025)

July 15, 2025

July 15, 2025

RECAP
37

RESPONSE by Department of Homeland Securityin Opposition to MOTION by Plaintiffs City Of Chicago, City and County of Denver, Pima County for preliminary injunction 27 (Attachments: # 1 Exhibit No. 1)(Johnson, Patrick) (Entered: 07/30/2025)

July 30, 2025

July 30, 2025

PACER
38

MOTION for Leave to Appear Pro Hac Vice on behalf of Federation for American Immigration Reform by Mateo Forero-Norena; Filing fee $ 150, receipt number AILNDC-23846013. (Forero-Norena, Mateo) (Entered: 08/06/2025)

Aug. 6, 2025

Aug. 6, 2025

PACER
39

MOTION by Amicus Federation for American Immigration Reform for leave to file an Amicus Curiae Brief (Attachments: # 1 Exhibit Proposed Amicus Curiae Brief of Federation for American Immigration Reform)(Forero-Norena, Mateo) (Entered: 08/06/2025)

Aug. 6, 2025

Aug. 6, 2025

PACER
40

MINUTE entry before the Honorable Matthew F. Kennelly: Motion to appear pro hac vice 38 is granted. Motion for leave to file amicus brief 39 is respectfully denied, as the motion does not show that the positions and perspectives of the proposed amicus are not adequately represented by the existing parties. (mk) (Entered: 08/09/2025)

Aug. 9, 2025

Aug. 9, 2025

PACER
41

MOTION by Plaintiffs City Of Chicago, City and County of Denver, Pima County for extension of time to file response/reply in support of Motion for Preliminary Injunction (Prather, Lucy) (Entered: 08/11/2025)

Aug. 11, 2025

Aug. 11, 2025

PACER
42

MINUTE entry before the Honorable Matthew F. Kennelly: Plaintiffs' motion for an extension of time to 8/15/2025 to file their reply brief is granted 41 . (mk) (Entered: 08/12/2025)

Aug. 12, 2025

Aug. 12, 2025

PACER
43

REQUEST for Clerk of Court to refund filing fee in the amount of $300.00, receipt no. 8478861 & 5258540, (Attachments: # 1 Exhibit Exhibit 1)(Brown, Samuel) (Entered: 08/13/2025)

Aug. 13, 2025

Aug. 13, 2025

PACER
44

REFUND PROCESSED re REQUEST for Clerk of Court to refund filing fee in the amount of $300.00, receipt no. AILNDC-23640457 and AILNDC-23640513. (lw, ) (Entered: 08/14/2025)

Aug. 14, 2025

Aug. 14, 2025

PACER
45

MINUTE entry before the Honorable Matthew F. Kennelly: At the Court's instance, due to its unanticipated unavailability on the morning of 8/20/2025, the telephonic status hearing set for that date is vacated and reset to 8/21/2025 at 9:15 a.m. The following call-in number will be used for the hearing: 650-479-3207; access code 2305-915-8729. (mk) (Entered: 08/14/2025)

Aug. 14, 2025

Aug. 14, 2025

PACER
46

REPLY by City Of Chicago, City and County of Denver, Pima County to MOTION by Plaintiffs City Of Chicago, City and County of Denver, Pima County for preliminary injunction 27, memorandum in support of motion, 28, response in opposition to motion, 37 (Attachments: # 1 Declaration Supplemental Declaration of Lucy Prather)(Prather, Lucy) (Entered: 08/15/2025)

Aug. 15, 2025

Aug. 15, 2025

PACER

Case Details

State / Territory: Illinois

Case Type(s):

Presidential/Gubernatorial Authority

Special Collection(s):

Trump Administration 2.0: Challenges to the Government

Trump Administration 2.0: Challenges to the Government (Grant/Contract rescissions, Defunding or Other Threats against Private Entities )

Key Dates

Filing Date: May 16, 2025

Case Ongoing: Yes

Plaintiffs

Plaintiff Description:

The City of Chicago, City and County of Denver, and Pima County,

Plaintiff Type(s):

City/County Plaintiff

Public Interest Lawyer: Yes

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

U.S. Department of Homeland Security (- United States (national) -), Federal

U.S. Federal Emergency Management Agency (- United States (national) -), Federal

Case Details

Causes of Action:

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

Constitutional Clause(s):

Spending/Appropriations Clauses

Separation of Powers

Available Documents:

Trial Court Docket

Complaint (any)

Outcome

Prevailing Party: None Yet / None

Nature of Relief:

None yet

Source of Relief:

None yet

Issues

General/Misc.:

Funding

Government services

Public assistance grants

Presidential/Gubernatorial Authority:

Impoundment (mandatory spending)