The Department of Homeland Security will withhold more than $1 billion in Homeland Security Grant Program funding from states that refuse to adopt new election security measures, according to a notice released by FEMA on July 9, 2026. The move represents a dramatic escalation in the Trump administration’s push to reshape state voting systems through federal funding conditions.
To qualify for the grants, states must transition away from electronic voting systems to hand-marked paper ballots, conduct manual audits of at least 5 percent of ballots cast after each federal election, and verify the citizenship of every registered voter using the SAVE database—the Systematic Alien Verification for Entitlements system. States must also match the number of voters who participated in an election with the number of ballots cast and complete citizenship verification within 120 days of receiving a grant award.
FEMA announced it will withhold 20 percent of Homeland Security Grant Program funding from states and “high-risk urban election jurisdictions” that fail to submit plans showing compliance with these requirements. The agency made more than $1 billion available through the program in fiscal year 2026 to help state and local governments strengthen law enforcement coordination, protect critical infrastructure, and improve disaster preparedness.
A DHS spokesperson told Fox News that under President Trump’s leadership, the administration is “taking decisive action to protect election systems from threats like foreign interference, insider threats, and cyberattacks.” The official framed the new requirements as essential to election integrity, saying the rules “will preserve election integrity and ensure that Americans can trust the results.”
The withholding affects grants historically used for counter-terrorism and emergency preparedness. New York’s police department, for example, should receive an estimated $182 million in security and counter-terrorism grants in fiscal year 2026 according to the New York comptroller’s office—funding that would face a 20 percent reduction if the state does not comply. These grants are described as “the primary source of funding for high threat, high-density urban areas.”
The move follows a pattern of the Trump administration tying federal homeland security grants to policy conditions. In prior instances, FEMA restricted funding over immigration enforcement and diversity, equity and inclusion policies, triggering lawsuits from states and local governments. The city of Salem, Oregon, sued FEMA and DHS in June for tying disaster funding to immigration enforcement and gender identity policies. A coalition of state attorneys general successfully sued to block the administration from reallocating homeland security funding away from states unwilling to enforce federal immigration law, with the Trump administration abandoning its appeal in May 2026.
The administration has also faced legal setbacks on election security itself. An Obama-appointed federal judge in Pittsburgh sided with Pennsylvania after the Justice Department sued more than 25 states seeking voter records including Social Security numbers. Judge Cathy Bissoon ruled the federal government lacks authority to demand such “highly sensitive” state information, according to Fox News reporting.
Sources
- Fox News — DHS withholding announcement, specific requirements including paper ballots, manual audits, SAVE database verification, 120-day timeline, DHS Secretary Markwayne Mullin statement, Pennsylvania court ruling details
- Smart Cities Dive — 20 percent funding withhold amount, “high-risk urban election jurisdictions” language, New York Police Department grant estimates, prior lawsuit precedent on immigration and DEI conditions
- FEMA.gov — $1 billion program availability, fiscal year 2026 grant notice
