Raleigh -- July 28, 2026: North Carolina Attorney General Jeff Jackson has joined a multi-state coalition in a federal lawsuit against the Federal Emergency Management Agency (FEMA) and the Department of Homeland Security (DHS). The legal action seeks to block federal threats to withhold critical counterterrorism, disaster response, and emergency preparedness grant funding.
The complaint, filed in federal court in Rhode Island, challenges newly attached administrative terms on the Homeland Security Grant Program (HSGP) and the Emergency Management Performance Grant (EMPG). Under these terms, the federal government is threatening to pull at least 20% of North Carolina’s public safety and counterterrorism money unless state officials comply with specific federal election and immigration mandates.
Participating States and Governors
The coalition includes attorneys general from 22 states and the District of Columbia, along with the governors of two states:
State Attorneys General:Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington, and Wisconsin, plus the District of Columbia.
State Governors: Kentucky and Pennsylvania.
Key Points of the Lawsuit
Direct Threat to Counterterrorism & Disaster Operations:The withheld dollars directly support North Carolina bomb squads, active shooter training exercises, cyberattack defenses, drone detection capabilities, and hazardous materials response teams. The grants also pay the salaries of emergency management personnel, fund search-and-rescue operations, and support backup communications during major natural disasters.
Unlawful Election and Policy Mandates:FEMA and DHS are requiring states to alter state voting procedures as a prerequisite for receiving counterterrorism money. Requirements include mandatory voter database citizenship checks using the federal Systematic Alien Verification for Entitlements (SAVE) system, post-election audits, and transitions to equipment that reads hand-marked paper ballots. Attorney General Jackson noted that FEMA holds no legal authority over election administration and that forcing equipment changes would compel at least 13 rural North Carolina counties to spend millions in local tax dollars replacing certified machinery.
Unilateral Cancellation Rule:The suit challenges a clause giving DHS the power to terminate grant funding at any time, for any reason, without prior notice. State officials argue this undermines operational stability, making it impossible to manage long-term counterterrorism initiatives or ongoing storm recoveries safely.
Constitutional Overreach:The complaint asserts that FEMA and DHS are violating the Spending Clause of the U.S. Constitution and the Administrative Procedure Act by fabricating conditions that Congress never authorized when appropriating emergency funds.
Judicial Path Ahead
Emergency Injunction:The coalition is requesting an emergency stay or preliminary injunction to block FEMA from enforcing the contested election terms before the September 30 federal grant award deadline.
Second Legal Clash: This represents the second lawsuit AG Jackson has brought against FEMA regarding conditional grant holds. In a prior case, federal courts ruled that FEMA's agency-created terms violated congressional intent, restoring $17 million to North Carolina emergency services.