Speaking before a gathering of business leaders at the Detroit Economic Club, US President Donald Trump introduced a wide-ranging set of legislative proposals concerning immigration enforcement and fraud that could potentially upend the country’s spending, state-level cooperation or even rules regarding citizenship. Drawing on his belief that the proposals would protect the nation’s taxpayers as well as stem any abuse within the system, President Trump highlighted illegal immigration, so-called sanctuary cities, as well as a pattern of abuse of government programs. The announcement takes place amidst mounting levels of political polarization between border security measures or spending.
Sanctuary Cities Face Funding Freeze
One of the biggest announcements made was the cut-off of payments to sanctuary states and cities, according to Trump, who stated that this would begin on February 1. In relation to the estimated cost of undocumented migrants in the country,Trump stated that the categories of housing, healthcare and education amount to tens of billions of dollars per year, according to federal estimates made in the speech. States like California are set to receive 90-day notices because they are known to harbor undocumented migrants with criminal records.
🚨 BREAKING: President Trump just announced he is SUSPENDING ALL PAYMENTS to sanctuary cities and states like Minnesota and California starting FEB. 1
FINALLY!
“They do everything possible to protect criminals at the expense of citizens. It breeds fraud and crime. NO PAYMENTS!” pic.twitter.com/zR9cpHwK6Q
— Nick Sortor (@nicksortor) January 13, 2026
Immigration Enforcement & State Compliance
Trump stated that his government would issue formal notice to those states that limit their collaboration with Immigration and Customs Enforcement, mandating their assistance in deporting those who illegally entered America. Trump indicated that his decision is an overhaul in relations with state governments concerning enforcing immigration laws, claiming that if state governments are given the liberty to choose whether to cooperate or not, there would be no effectiveness in national immigration law.
Fraud Allegations & Federal Crackdown
The president was also very concerned about what he alleged was fraud in government programs. He said that about 8,000 Small Business Administration loans in Minnesota had been put on hold because of suspected fraud, with the Justice Department charging close to 100 people in connection with these cases. Although these numbers have not been fully adjudicated, President Trump said the level of suspected fraud was “systemic,” with the governor failing to notice any signs of it. He established a new strike force in the Justice Department to seek out fraud in all federal agencies.
Citizenship Revocation & Legal Pushback
One of the most contentious proposals put forward has been that of Trump’s plan to seek the revocation of citizenship for naturalised individuals who have been convicted of fraud, as well as the deportation of those without citizenship who have a criminal record. It has been reported that the revocation of citizenship is a rare occurrence, as well as a lengthy process that has to go to judicial review, by a federal court decision that has temporarily stayed the freezing of funds regarding child care subsidies in five states.
