Democratic-Led States Sue DHS Over Withholding Disaster Funds to Force Election Changes

A coalition of mostly Democratic-led states asked a federal judge on July 23, 2026 to block the Department of Homeland Security from withholding certain disaster-preparedness funds until states adopt election practices favored by the Trump administration, Reuters reported. DHS announced on July 10 that it would withhold 20 percent of FEMA grant awards meant to help states prepare for terrorist attacks and other threats until states submit plans to use equipment that accepts hand-marked paper ballots rather than systems that use bar codes or QR codes to count votes.

The suit argues the administration cannot condition congressionally appropriated preparedness grants on unrelated changes to how states run elections. The dispute tests the limits of executive authority to attach policy conditions to federal funds and to influence election administration, which is primarily a state responsibility.

The request for a court order was pending; no ruling had been issued.