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U.S. President Donald Trump looks on during a news conference in New Delhi, India, on Feb. 25, 2020.

ALEXANDER DRAGO/Reuters

The Trump administration can withhold millions of dollars in law enforcement grants to force states to co-operate with U.S. immigration enforcement, a federal appeals court in New York ruled Wednesday in a decision that conflicted with three other federal appeals courts.

The ruling by the 2nd U.S. Circuit Court of Appeals in Manhattan overturned a lower court’s decision ordering the administration to release funding to New York as well as seven states: New York State, Connecticut, New Jersey, Washington, Massachusetts, Virginia and Rhode Island.

The states and city sued the U.S. government after the Justice Department announced in 2017 that it would withhold grant money from cities and states until they gave federal immigration authorities access to jails and provide advance notice when someone in the country illegally is about to be released.

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Before the change, cities and states seeking grant money were required only to show they were not preventing local law enforcement from communicating with federal authorities about the immigration status of people who were detained.

At the time, then-Attorney-General Jeff Sessions said: “So-called ‘sanctuary’ policies make all of us less safe because they intentionally undermine our laws and protect illegal aliens who have committed crimes.”

In 2018, the Justice Department imposed additional conditions on the grant money, although challenges to those have not yet reached the appeals court in New York.

The 2nd Circuit said the plain language of relevant laws make clear that the U.S. attorney-general can impose conditions on states and municipalities receiving money.

And it noted that the U.S. Supreme Court has repeatedly observed that the federal government maintains broad power over states when it comes to immigration policies.

In the past two years, federal appeals courts in Chicago, Philadelphia and San Francisco have ruled against the federal government by upholding lower-court injunctions placed on the enforcement of some or all of the challenged conditions.

“While mindful of the respect owed to our sister circuits, we cannot agree that the federal government must be enjoined from imposing the challenged conditions on the federal grants here at issue,” the 2nd Circuit three-judge panel said in a decision written by Justice Reena Raggi.

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“These conditions help the federal government enforce national immigration laws and policies supported by successive Democratic and Republican administrations. But more to the authorization point, they ensure that applicants satisfy particular statutory grant requirements imposed by Congress and subject to Attorney-General oversight,” the appeals court said.

The Justice Department praised the decision, issuing a statement calling it a “major victory for Americans” and saying it recognizes that the attorney-general has authority to ensure that grant recipients are not thwarting federal law enforcement priorities.

The department added that the ruling’s effect will be limited because other courts have ruled the other way, giving the plaintiffs in the New York case the opportunity to point to those as reasons to ignore the new conditions.

Cody Wofsy, a staff lawyer with the American Civil Liberties Union, called the decision a “real outlier,” saying he believed the 2nd Circuit was the country’s first court to side with the Trump administration on the issue.

“Over and over, courts have said the Department of Justice doesn’t have authority under governing statutes to impose these conditions,” he said. “These conditions are part of the administration’s attempts to bully, cajole and coerce state and local governments into participating in federal immigration enforcement activities.”

Under the Constitution’s federalism principles and the 10th Amendment, Mr. Wofsy said, states and municipalities “are entitled to decline to become part of the administration’s deportation force.”

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In a statement, New York Mayor Bill de Blasio said Mr. Trump’s “latest retaliation against his hometown takes away security funding from the No. 1 terrorist target in America – all because we refuse to play by his arbitrary rules.”

He added: “We’ll see President Trump back in court and we will win.”

Bitta Mostofi, commissioner of the city’s Office of Immigrant Affairs, said in a statement that the ruling was deeply troubling.

“New York City stands with our immigrant brothers and sisters and that will never change,” Ms. Mostofi said.

The appeals rulings pertain to the issuance of the Edward Byrne Memorial Justice Assistance Grant Program.

Created in 2006, it is the vehicle through which Congress annually dispenses more than $250-million in federal funding for state and local criminal justice efforts.

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The Byrne Program was named for New York police officer Edward Byrne, who at the age of 22 was shot to death while guarding the home of a Guyanese immigrant co-operating with authorities investigating drug trafficking.

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