States Sue to Block DHS/FEMA Grant Conditions Tied to Election Administration

On July 23, 2026, a coalition of states sued the Trump administration, asking a court to block DHS and FEMA from conditioning Homeland Security Grant Program funding on election-administration changes. The states say the conditions would require state election systems to move toward hand-marked paper ballots, add post-election manual audits, and use DHS’s SAVE system to verify the citizenship of voters and election workers.

The lawsuit highlights a practical accountability question for residents: even when federal money is labeled “disaster preparedness” and “homeland security,” the alleged compliance requirements could pressure states to make election-policy choices well before the next major election deadlines.

What the lawsuit says happened

Associated Press reports that more than two dozen states sued on Thursday, with the case filed in Rhode Island and aimed at FEMA and DHS policies tied to disaster funding. CBS News reports the complaint was filed by a group of 25 states and the District of Columbia.

Minnesota Attorney General Keith Ellison announced the coalition filing, saying FEMA and DHS imposed election-related requirements on counterterrorism and disaster relief funds. Pennsylvania Gov. Josh Shapiro said the lawsuit seeks to stop the alleged imposition of conditions that would require states to change how they administer elections to receive awards through the 2026 Homeland Security Grant Program.

According to AP, the states argue the conditions violate the Administrative Procedure Act and the U.S. Constitution’s spending clause. AP also reports that FEMA said it expected courts to reject what it called partisan pushback.

What the grant notice requires (as written)

The core document at issue is the FY 2026 Homeland Security Grant Program (HSGP) notice of funding opportunity, which lays out election-security requirements under specific election security priorities.

Among the requirements described in the grant materials:

• Paper-ballot transition planning: states and high-risk urban areas must submit a transition plan for moving away from electronic voting systems that use bar codes or QR codes to equipment that accepts hand-marked paper ballots. The plan must include a timeline and, if necessary, a funding request to eliminate ballot marking devices and utilize hand-marked paper ballots.
• Post-election manual audit threshold: the materials require proof of compliance with a “post-election 5% manual audit,” conducted according to guidelines established by the Secretary to ensure electronic voting systems accurately count votes.
• Voter/ballot reconciliation: the materials require that each election jurisdiction reconcile the number of voters who voted in each federal election to the number of ballots cast using a methodology established by the Secretary.
• Citizenship verification for voters via SAVE: the materials call for using DHS’s Systematic Alien Verification for Entitlements (SAVE) system to verify the citizenship of all individuals in the state voter registration database within 120 days of accepting the grant award (subject to the NOFO’s discussion of how SAVE functionality may be handled while an appeal is pending).
• Citizenship verification for election workers: the materials also require using SAVE (or another authorized government system) to verify U.S. citizenship for any person working at a polling place in any capacity, or operating any election system in the jurisdiction—including temporary agency workers and vendors. The materials direct states’ chief election officials to ensure verified non-U.S. citizens are prohibited from operating election systems or working at polling places consistent with applicable law.

The notice further distinguishes election-security funding mechanics: it describes a minimum spending requirement and, separately, a drawdown condition. Specifically, it explains that FEMA will withhold from drawdown an amount equal to 20% of a recipient’s total HSGP award (SHSP, UASI, and OPSG) until the recipient submits proof of compliance with the election security requirements and the Department verifies or confirms it.

Who is affected in practice

State election offices and administrators are directly affected because the requirements described in the grant notice are written as obligations for “each state” (and high-risk urban areas) and are tied to the state’s chief election official. Election workers and election-system contractors could also feel indirect effects if states alter staffing and verification processes to comply with the grant terms described in the notice.

Residents may feel the impact less through day-to-day changes and more through downstream choices: whether states update voting equipment plans, redesign audit procedures, and adjust administrative workflows for citizenship verification to avoid funding delays or drawdown limits.

What happens next

Because this is active litigation, the immediate question for residents is not what states claim the conditions will require, but what the court orders first. The plaintiffs are seeking a court remedy to block the grant conditions as applied to the states (and they describe the relief as broader in scope in reporting).

In the near term, readers should watch:

• Whether the court issues any temporary order affecting enforcement of the election-related requirements tied to FEMA/DHS grant administration.
• Whether FEMA or DHS adjusts grant guidance while the case proceeds, especially around what counts as “proof of compliance” and when verification happens.
• State decisions about compliance planning as grant timelines approach, including how officials prepare audits and SAVE-related procedures while the lawsuit is unresolved.

Sources

• Associated Press: states sue over FEMA/DHS grant conditions
• Minnesota AG Ellison (July 23, 2026): description of the challenged conditions
• FY 2026 HSGP NOFO: Election Security requirements and the 20% holdback drawdown condition
• CBS News: estimates and what the complaint alleges
• Pennsylvania Gov. Shapiro press release (July 23, 2026)