S&P: Sanctuary Cities Won't See Ratings Dip With Trump Order
A major rating agency said if sanctuary communities that refuse to cooperate with immigration authorities lose federal funds under President Donald Trump's executive order, their credit ratings aren't likely to change.
Standard & Poor's issued a report Thursday examining the financial health of more than 100 cities and counties that call themselves sanctuaries.
S&P said if Trump were to follow through on the threat to withhold certain funds, credit ratings would likely remain "largely unchanged." That's because the type of grants in question don't make up large parts of the municipalities' budgets.
The agency's report is also skeptical of Trump's authority to withhold funds, saying federal law and legal precedent limit him. The order already faces court challenges.
Some of the nation's largest metropolitan areas — including New York, Los Angeles and Chicago — are considered sanctuary cities.
In Chicago, the City Council overwhelmingly voted in January in favor of a resolution to reaffirm Chicago's status as a sanctuary city despite Trump's executive order. Mayor Rahm Emanuel added that people from all over the world are welcome in Chicago to "pursue the American Dream."
Attorney General Jeff Sessions issued fresh warnings to sanctuary cities this week.