A federal judge sided with Salem on Thursday, Aug. 13, blocking the Trump administration from enforcing diversity and immigration-related conditions on more than $1 million in disaster relief grants the city needs to repair flood-damaged infrastructure.
U.S. District Court Judge Michael McShane issued a preliminary injunction against the Federal Emergency Management Agency and the Department of Homeland Security, according to the Statesman Journal. The ruling is Salem's first court win since filing its lawsuit June 30 in U.S. District Court in Eugene.
The money at stake would replace damaged culverts and restore permanent access to the West Salem Pump Station, which carries wastewater from West Salem beneath the Willamette River to the city's primary treatment facility. December 2025 storms brought flooding, landslides and mudslides that knocked out the route. Temporary access has been restored, but the city says a permanent fix is needed before the next round of severe weather.
Without the federal funding, the repair costs could fall on local residents, businesses and utility customers.
What the lawsuit argues
Salem filed its 71-page complaint June 30, accusing DHS and FEMA of exceeding congressional authority by tying disaster funding to policies on diversity, equity and inclusion, immigration enforcement, gender identity and compliance with executive orders unrelated to disaster recovery. In the complaint, the city accused the agencies of exceeding their lawful authority and encroaching on Congress's power of the purse.
The federal government approved a major disaster declaration in April, making public assistance available for eligible recovery work. But the grant came with conditions in the FY25 and FY26 DHS Standard Terms and Conditions that Salem says Congress never authorized.
Federal attorneys argued July 29 that Salem would not suffer irreparable harm from the conditions. Judge McShane's preliminary injunction effectively rejected that argument.
A DHS spokesperson said July 5, when the lawsuit was filed, that it was "another attempt to obstruct President Trump's agenda and the will of the American people" and that jurisdictions impeding federal immigration enforcement should not receive federal funding.
What comes next
Salem is the sole plaintiff. A city spokesperson said at the time of filing that other jurisdictions could join later. The city did not issue a public statement about the Aug. 13 ruling.
The case, formally titled City of Salem v. Mullin, remains ongoing. A final ruling on the merits has not been issued, and no next hearing date has been publicly announced. Residents can track the case docket through the Civil Rights Litigation Clearinghouse.
