OLYMPIA, WA — The U.S. Department of Justice has dropped its appeal in a legal case challenging the federal government’s attempt to withhold transportation grant funding from states that do not assist with federal immigration enforcement, according to an announcement from the Washington State Attorney General’s Office.

The decision leaves in place a prior court judgment that permanently blocks the policy and resolves the case in favor of Washington and 21 other states that filed suit in May 2025. The lawsuit argued that the federal government lacked authority to impose immigration-related conditions on transportation grants administered by the U.S. Department of Transportation.

Washington relies on more than $1 billion annually in federal transportation grants that support statewide infrastructure projects, including roads, highways, bridges, airways, and transit services. According to the state, the funding also supports traffic safety programs, transit for seniors and people with disabilities, and repairs following natural disasters.

A federal district court issued a final judgment in November 2025, finding that the administration’s policy exceeded statutory authority, violated federal administrative law, and conflicted with constitutional limits on federal spending conditions. With the appeal now withdrawn, the ruling remains in effect, pending court approval of final procedural steps.

The Attorney General’s Office stated that the transportation grants at issue are governed by congressional statutes and are not connected to immigration enforcement requirements. The office said the case is now fully resolved, ensuring continued access to the federal transportation funding already approved by Congress.