Trump Ties $1B in Counterterrorism Funds to Election Rule Changes

The Trump administration is withholding $1.064 billion in federal counterterrorism funding from states that refuse to adopt new voting rules. The Department of Homeland Security announced that 20 percent of every Homeland Security Grant Program award will be held until states verify voter citizenship, conduct manual audits of at least 5 percent of ballots, and transition to hand-marked paper ballots. The move pressures states four months before midterm elections.

What the new grant requirements demand

FEMA released its Fiscal Year 2026 funding notice on June 24, requiring states to submit election security plans to unlock their grants. States must transition away from electronic voting systems using QR codes or barcodes and adopt hand-marked paper ballots instead. After each federal election, states must manually audit at least 5 percent of all ballots cast to verify that voting machines match the paper trail. States must also use the SAVE database (Systematic Alien Verification for Entitlements) to verify citizenship of every listed voter within 120 days of receiving a grant award.

The funding at stake and the timeline

The Homeland Security Grant Program distributes $1.064 billion across three channels: the State Homeland Security Program for statewide preparedness, the Urban Area Security Initiative for high-risk cities, and Operation Stonegarden for border security. New York alone expects about $204 million in FY26 funding. The deadline for states to apply is July 24. DHS will withhold 20 percent of every award until it verifies compliance with the election requirements. Democratic House members warned that nearly $200 million in FY 2026 funding is being held hostage, while more than $600 million from FY 2025 funding remains delayed.

Legal and political backlash

Courts have rejected most of the administration’s previous election efforts, which rest on unsubstantiated claims of widespread voting fraud. Rick Hasen, a UCLA law professor and director of the Safeguarding Democracy Project, said the administration is using “whatever levers of power” to interfere with state elections. Derek Muller, a University of Notre Dame election law specialist, suggested the Justice Department’s five-day compliance letter to all 50 states merely restates existing law. Courts have blocked most of the administration’s priorities, and Democrats on the House Homeland Security Committee called the move “deeply alarming” and a threat to public safety.

Election Assistance Commission left without leadership

On July 9, President Trump removed all three sitting commissioners of the Election Assistance Commission (EAC), the bipartisan body established in 2002 to certify voting equipment and set election standards. Thomas Hicks and Benjamin Hovland, the two Democratic members, were fired by email, while Republican Christy McCormick was allowed to resign. The EAC requires at least three commissioners to conduct official business. Without a quorum, the commission cannot certify new voting equipment or disburse HAVA Election Security Grants to states.

Final Thoughts

The administration is using federal funding as leverage to reshape state election rules months before midterms. Courts have blocked similar efforts, and legal experts question whether the conditions are lawful or merely restate existing law. The outcome will likely depend on judicial review.

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