Cooperation incentives and highway funds penalties for sanctuary jurisdictions

(a) Defined term In this section, the term sanctuary jurisdiction means any State or political subdivision of a State that has in effect any law, policy, or practice that prohibits or restricts government entities or officials from— (1) sharing citizenship or immigration status information with the Department of Homeland Security; or (2) complying with detainers or notification requests issued by the Department of Homeland Security. (b) Cooperation incentives (1) Authorization of appropriations There is authorized to be appropriated to the Department of Homeland Security $150,000,000 for fiscal year 2026 and every subsequent fiscal year annually for competitive grants to be awarded to States and local governments that fully cooperate with immigration detainers, agreements authorized under section 287(g) of the Immigration and Nationality Act (8 U.S.C. 1357(g)), and information sharing. (2) Use of grant funds Grant funds awarded pursuant to paragraph (1) may be used for detention capacity, officer training, and enforcement equipment. (c) Penalties (1) In general Beginning on the first day of the first fiscal year beginning after the date of the enactment of this Act, the Secretary of Transportation, except as provided under paragraph (2), shall withhold 15 percent of the funds a sanctuary jurisdiction would otherwise receive from the Highway Trust Fund apportionment in the relevant fiscal year unless the sanctuary jurisdiction certifies to the Secretary of Homeland Security that it no longer meets the definition of sanctuary jurisdiction under paragraph (1). (2) Grace period; appeals Notwithstanding paragraph (1)— (A) each sanctuary jurisdictions shall be given 180 days from the date of notification that funding from the Highway Trust Fund will be withheld to submit the certification described in paragraph (1); and (B) sanctuary jurisdictions may appeal a withholding determination to the Attorney General on grounds of undue hardship.