North Carolina Attorney General Jeff Jackson has just joined a coalition of states in suing FEMA and the Department of Homeland Security for illegally withholding over $1 billion in disaster response and counterterrorism funding.
The lawsuit claims the funding supports critical public safety operations, including bomb squads, active shooter training, cybersecurity defenses, emergency management and hurricane response efforts.
According to the complaint, the challenged grants have helped states prepare for terrorist attacks, natural disasters and other emergencies for decades. The lawsuit argues the new conditions imposed by FEMA and DHS are unrelated to the programs’ intended purpose and violate federal law.
Jackson said one of the biggest concerns is a new provision that would allow FEMA to terminate grant funding if the agency determines an award no longer advances its priorities. The lawsuit argues that gives federal officials broad authority to cut off funding that states rely on for public safety.
“FEMA is threatening our counterterrorism funding again,” said Attorney General Jeff Jackson in a press release. “The last time they tried this, we took them to court and won. Now they’re trying again, and I expect we’ll beat them – again. Hopefully they get the message: Don’t threaten our first responders unless you’re ready for a fight.”
AG @JeffJacksonNC sued FEMA and DHS for threatening to withhold more than a billion dollars that states use to fund counterterrorism and disaster response efforts. https://t.co/U3Tad8suhV pic.twitter.com/eIq45sxzXl
— NC Attorney General (@NCAGO) July 27, 2026
The lawsuit also challenges new election-related conditions attached to Homeland Security grants. According to the complaint, states could lose at least 20% of their Homeland Security Grant Program funding if they do not adopt several federally directed election policies, including new citizenship verification requirements and changes to voting systems.
The coalition further argues the federal government is attempting to use emergency preparedness funding to influence state election administration and immigration policies, which the plaintiffs contend exceeds Congress’ authority and violates the U.S. Constitution.
The complaint was filed in federal court by North Carolina and more than two dozen other states, along with the governors of Kentucky and Pennsylvania. Plaintiffs include Arizona, California, New York, Illinois, Virginia, Washington and several others.
The states are asking the court to block FEMA and DHS from enforcing the new grant conditions, arguing the agencies violated the Administrative Procedure Act, exceeded their statutory authority and imposed unconstitutional conditions on billions of dollars in federal funding.
Your can read the full lawsuit here.
