Key Takeaways
• On May 16, 2025, Pima County sued DHS and FEMA over $12 million in frozen asylum seeker care funds.
• Federal agencies terminated three major grants in April 2025, forcing closure of Pima County’s main shelter.
• Pima County claims reimbursements are owed for sheltering 517,000 legally processed migrants since 2019.
On May 16, 2025, Pima County, Arizona, took a dramatic step in the ongoing struggle over federal funding for asylum seeker care. The county filed a federal lawsuit against the U.S. Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA), seeking to recover more than $12 million in frozen federal funds. These funds were intended to reimburse the county for sheltering and supporting asylum seekers who had been legally processed and released by U.S. Customs and Border Protection (CBP). Pima County’s action, joined by the cities of Chicago and Denver, highlights a growing conflict between local governments and federal agencies over the management and funding of humanitarian services for migrants at the U.S.-Mexico border.
This legal battle comes after DHS and FEMA abruptly terminated key grants in April 2025, cutting off support for Pima County’s main shelter, Casa Alitas, and forcing the closure of county-run operations. The dispute centers on whether local governments should be reimbursed for providing care to migrants who have followed legal processes, and what happens when federal agencies change their policies midstream.
Why Did Pima County Sue the Federal Government?
Pima County’s lawsuit is a direct response to the termination of three major federal grants that had supported its asylum seeker care program since 2019. According to county officials, these funds were Congressionally appropriated and were used strictly to shelter migrants who had been legally processed and released by CBP—not individuals who entered the country unlawfully and remained outside the legal system.
The county argues that it followed every regulation and law tied to the grants. As Pima County Board of Supervisors Chair Rex Scott explained:
“We relied on these Congressionally appropriated funds and adhered to every regulation and law. Now, under the second Trump Administration, the federal government is suddenly changing the rules while sending confusing communications about reimbursement requirements along with arbitrary response deadlines for ambiguous and conflicting demands, and is then nonresponsive for months about whether they’re going to comply with federal law.”
The lawsuit, filed in the U.S. District Court for the Northern District of Illinois, seeks to force the federal government to release over $12 million in unpaid reimbursements for services already provided. Pima County is currently waiting for about $10.3 million in pending reimbursements, with another $3.7 million in expenses not yet submitted.
What Led to the Funding Freeze?
The roots of this conflict go back to 2019, when the federal government began awarding shelter grants to localities like Pima County to help manage the influx of asylum seekers released by CBP. Over the next five years, Pima County spent more than $52 million in federal grants to shelter approximately 517,000 legally processed asylum seekers. These funds covered short-term shelter, transportation, and basic support, typically for a few days, until migrants could travel to their final destinations in the United States 🇺🇸.
The process worked as follows:
- CBP processed and released migrants who had passed initial legal screenings.
- Border Patrol often transported these migrants directly to county shelters.
- Pima County provided short-term care and then submitted expenses for reimbursement through FEMA’s Shelter and Services Program.
This system operated smoothly until early 2025, when FEMA notified Pima County that it might withhold reimbursements for grants approved in late 2024. The agencies cited a new, more restrictive interpretation of eligibility, claiming the program had provided “support for illegal aliens.” Local officials strongly dispute this, emphasizing that only migrants who had been legally processed and released by federal authorities were served.
In April 2025, DHS officially terminated three key grants, halting all new funding and prompting the closure of Casa Alitas and other county-run shelters. Since February 2025, Pima County has received no further communication from FEMA about the status of its pending reimbursements.
The Immediate Impact on Pima County and Asylum Seekers
The funding freeze has had swift and severe consequences for both Pima County and the migrants it serves:
- Closure of Casa Alitas: The county’s main shelter for asylum seekers has shut its doors, leaving newly arrived migrants with nowhere to go.
- End of county-run shelter operations: Without federal support, Pima County cannot continue to provide shelter, transportation, or basic care for asylum seekers.
- Millions in unreimbursed expenses: The county is left with over $12 million in unpaid bills for services already provided, straining local budgets and forcing difficult choices about other public services.
Local officials warn that the loss of federal funding could lead to increased homelessness and public health risks in border communities. Migrants who would have previously received short-term shelter and support may now be left on the streets, with no resources or guidance.
Broader Implications for Border Communities and Federal-Local Cooperation
Pima County’s lawsuit is not just about money—it raises fundamental questions about the relationship between local governments and federal agencies in managing migration and humanitarian needs. According to analysis by VisaVerge.com, the abrupt policy change and lack of clear communication from DHS and FEMA have created confusion and financial risk for local governments across the country.
Other cities, including Chicago and Denver, have joined the lawsuit, facing similar funding shortfalls and uncertainty. Policy experts warn that if the federal government can retroactively change the rules and withhold Congressionally appropriated funds, it could discourage localities from cooperating in future humanitarian initiatives.
Local communities are also feeling the strain. Without federal support, the burden of caring for asylum seekers may fall on local charities, faith groups, or volunteers—many of whom lack the resources to meet the scale of need. This could lead to more visible homelessness, public health challenges, and strained local resources.
The Federal Government’s Position
DHS and FEMA argue that the funding freeze is consistent with new policy priorities. They claim that supporting migrants who are awaiting removal proceedings is no longer aligned with current DHS objectives, even if those migrants have been legally processed and released by CBP.
Federal agencies maintain that the terminated grants were providing support to “illegal aliens,” a claim that Pima County and other localities strongly dispute. Local officials stress that they have always complied with federal law and procedures, and that Border Patrol itself often transported migrants directly to their shelters.
The agencies are now reviewing whether any reimbursement is possible under the new, more restrictive guidelines. However, as of mid-May 2025, Pima County has received no clear answers or timeline for when, or if, the pending reimbursements will be paid.
How the Shelter and Services Program Worked
To understand the stakes, it’s important to look at how the FEMA Shelter and Services Program operated:
- Migrants processed by CBP: Only individuals who had been legally processed and released by federal authorities were eligible for shelter.
- Short-term care: Pima County provided food, shelter, medical screening, and transportation assistance, usually for a few days.
- Expense reimbursement: The county submitted detailed documentation of expenses to FEMA, which operated the program on a reimbursement basis.
- Federal review: FEMA reviewed the submissions and, if approved, reimbursed the county for eligible costs.
This system allowed local governments to respond quickly to humanitarian needs at the border, knowing that federal support would cover the costs. The sudden termination of this funding has upended that arrangement, leaving localities exposed to significant financial risk.
For more information on FEMA’s programs, readers can visit the official FEMA website.
Stakeholder Perspectives: Who’s Affected and How?
The dispute over asylum seeker care funding affects a wide range of stakeholders:
- Pima County: Seeks reimbursement for legally mandated humanitarian services; claims the federal government is overreaching and undermining local efforts.
- Chicago & Denver: Joined the lawsuit, facing similar funding shortfalls and policy uncertainty.
- DHS/FEMA: Argue that the program supported “illegal aliens” and terminated grants under new priorities.
- Local communities: Worry about increased homelessness, public health risks, and strained local resources as shelters close.
- Policy experts: Warn that the conflict could undermine federal-local cooperation and reduce the capacity for humanitarian response in future crises.
Historical Context: How Did We Get Here?
The current crisis is the result of several years of evolving federal policy and local response:
- 2019: The federal government began awarding shelter grants to Pima County and other localities to help manage the influx of asylum seekers released by CBP.
- 2019–2024: Pima County spent over $52 million in federal grants to shelter more than 517,000 asylum seekers, providing short-term care and transportation.
- 2023–2024: FEMA’s Shelter and Services Program continued to fund these efforts, with the latest grant cycle in August 2024 approving nearly $19 million for Pima County.
- February 2025: FEMA notified Pima County of possible reimbursement withholdings for grants approved in late 2024, citing new policy interpretations.
- April 2025: DHS officially terminated three key grants, halting all new funding and prompting the closure of local shelter operations.
- May 16, 2025: Pima County, Chicago, and Denver filed a federal lawsuit seeking reimbursement and challenging the legality of the funding freeze.
What Happens Next? Legal and Policy Outlook
The lawsuit filed by Pima County and its partners is now pending in federal court. The outcome could have far-reaching implications for other localities facing similar funding disputes. If the court rules in favor of the local governments, it may set a precedent that limits the ability of executive agencies to override Congressional appropriations and change the rules after the fact.
On the other hand, if the federal government prevails, localities may be left with millions in unreimbursed expenses and little incentive to participate in future federal humanitarian initiatives. The uncertainty is already affecting shelter operations: unless funding is restored or reimbursed, Pima County is unlikely to resume sheltering asylum seekers, shifting the burden to other entities or leaving migrants without support.
Policy analysts caution that the abrupt policy change and lack of clear communication have created confusion and financial risk for local governments. This could discourage future cooperation and reduce the capacity for effective humanitarian response at the border.
Real-World Example: The Closure of Casa Alitas
The closure of Casa Alitas, Pima County’s main asylum seeker shelter, offers a stark example of the practical effects of the funding freeze. For years, Casa Alitas provided a safe place for newly arrived migrants to rest, receive medical care, and arrange transportation to their final destinations. With federal funds cut off, the shelter has closed, leaving migrants with nowhere to go and local communities scrambling to fill the gap.
Local charities and volunteers are doing what they can, but they lack the resources to meet the scale of need. As a result, more migrants may end up on the streets, increasing the risk of homelessness, illness, and other challenges.
What Can Readers Do?
For those interested in learning more or supporting local efforts, Pima County maintains a detailed Southwest Border Information page with program history, data, and updates. Residents can also contact their elected representatives to express their views on federal funding for asylum seeker care.
Key Takeaways and Next Steps
- Pima County has sued the federal government to recover over $12 million in frozen funds for asylum seeker care, joined by Chicago and Denver.
- Federal agencies have terminated key grants, forcing the closure of local shelters and leaving localities with millions in unreimbursed expenses.
- The legal dispute centers on whether local governments should be reimbursed for sheltering migrants who have been legally processed and released by CBP.
- The outcome of the lawsuit could set a national precedent for federal-local cooperation in humanitarian response and the interpretation of Congressionally appropriated funds.
- Local communities are already feeling the impact, with increased risk of homelessness and strained resources as shelters close.
For official updates and authoritative information, visit the Federal Emergency Management Agency (FEMA) and Pima County Southwest Border Information.
As the legal process unfolds, the future of asylum seeker care in Pima County and other border communities remains uncertain. What is clear is that the stakes are high—not just for local governments and federal agencies, but for the thousands of migrants who depend on these services for safety and support as they begin new lives in the United States 🇺🇸.
Learn Today
Pima County → A county in Arizona providing asylum seeker care at the U.S.-Mexico border with federal support.
DHS → Department of Homeland Security, responsible for immigration enforcement and border security in the U.S.
FEMA → Federal Emergency Management Agency, provides grants and disaster response including humanitarian aid programs.
CBP → U.S. Customs and Border Protection, processes and legally releases migrants seeking asylum at the border.
Shelter and Services Program → A FEMA reimbursement initiative funding local care for legally processed asylum seekers.
This Article in a Nutshell
Pima County sued the federal government to recover $12 million frozen funds after DHS and FEMA cut asylum seeker shelter grants. This legal battle highlights federal-local conflicts affecting thousands of migrants and could set important precedents for future humanitarian cooperation at U.S. border communities.
— By VisaVerge.com
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• Asylum seeker convicted of sexual assault faces deportation in UK
• UK reduces use of hotels for asylum seekers as numbers fall again
• Asylum Seekers Rarely Commit Fraud, Data Reveals
• Far-right teenagers in Germany arrested over asylum seeker attacks
