Salem is taking the federal government to court, accusing it of trying to turn disaster relief into a political loyalty test.
The city filed a federal lawsuit on June 30 in U.S. District Court in Eugene, alleging the Department of Homeland Security and the Federal Emergency Management Agency have unlawfully tied new policy conditions to already approved disaster grants. At stake, according to the filing, is more than $1 million in emergency funding that Salem says it needs to repair storm damage from December 2025. City attorneys say the lawsuit is aimed at keeping those conditions from blocking work the city considers critical.
What Salem Says DHS And FEMA Did Wrong
The 71 page complaint argues that DHS and FEMA exceeded their legal authority by inserting fiscal year 2025 and 2026 requirements into grant agreements that, in the city's view, have no real connection to disaster recovery. The challenged terms touch on diversity, equity and inclusion programs, cooperation with federal immigration enforcement and the administration's language on gender identity.
Salem contends that agreeing to those terms could expose the city to lawsuits under the False Claims Act if it certifies compliance under pressure of losing the grant money. The filing identifies $1,093,800 in Public Assistance funding for culvert replacement and access work at the West Salem Pump Station as immediately at risk, according to the City of Salem.
DHS Pushes Back On The Allegations
The Department of Homeland Security is standing by the administration's policies. In a statement to KATU, DHS said FEMA has put controls in place to keep grant activity transparent and lawful and to prevent fraud, waste and abuse.
The department also reiterated a familiar position, according to the station, that jurisdictions that impede federal immigration enforcement should not receive federal funding.
How Salem Fits Into A Larger Legal Fight
Salem's lawsuit is the latest in a series of challenges from cities and states that argue the administration's grant conditions go beyond what Congress authorized and improperly tie federal spending to unrelated policy goals. Law360 has detailed similar filings in other jurisdictions.
The litigation tracker at Just Security lists Salem's case alongside recent lawsuits that raise Spending Clause and Administrative Procedure Act claims targeting these kinds of grant conditions.
Why Timing Matters In Salem
On top of the legal arguments, Salem is telling the court that the clock is ticking. According to the complaint, environmental permits limit in water construction work to the period from July 1 through October 31, 2026. The city warns that further delay could jeopardize a permanent fix that would restore safe access to the West Salem Pump Station.
The filing says Salem applied for Public Assistance on May 4 and received a proposed grant agreement for $1,093,800 on May 26. Around the same time, FEMA reissued a Building Resilient Infrastructure and Communities, or BRIC, notice of funding opportunity in March, creating another mitigation window the city says it may pursue, according to the Oregon Department of Emergency Management and the complaint.
What Salem Wants From The Court
Salem is asking the judge to declare the disputed terms unlawful and to either vacate them or block their enforcement. The city also wants protection for both the Public Assistance funding it says has already been awarded and for future grant opportunities that could be affected by the same conditions.
The case is docketed as 6:26 cv 01340 in the U.S. District Court for the District of Oregon's Eugene Division, according to Just Security.
For now, neither side is talking much beyond the paperwork. Salem officials declined to comment on the pending lawsuit, and DHS said it would not go beyond its public statement, as reported by KATU.
