The Trump administration can't withhold disaster relief

Summary

Marketplace Morning Report Episode Summary

Episode Title: The Trump administration can't withhold disaster relief
Date: December 24, 2025
Host: Sabri Benishore (in for David Brancaccio)
Podcast: Marketplace Morning Report

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Episode Overview

This episode delivers important overnight business and economic news, focusing on a federal judge's ruling against the Trump administration’s attempt to withhold disaster relief to “sanctuary” jurisdictions. Additional topics include legal developments around H1B visa fees, BP’s major business sale, the future of SNAP benefits after the government shutdown, and an interview with Charles Dennis of Feeding America, Kentucky’s Heartland, on food insecurity and community response.

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Key Discussion Points & Insights

1. Federal Judge Blocks Withholding of Disaster Relief

[00:55–02:17]

• The News:
  A Trump-appointed federal judge has ordered the administration to restore homeland security disaster funding to 12 states and DC, funds that were withheld from “sanctuary” jurisdictions.
• The Details:
  • The funds, meant for counterterrorism and disaster response (including police and emergency response programs), had been cut in September.
  • New York had lost $100 million; overall, over $200 million is being ordered returned.
  • The judge ruled the reallocation was "arbitrary and capricious."
  • Funds are supposed to be distributed based on actual threat, not political stances.
• Legal perspective:
  • The administration provided no clear formula for how jurisdictions were chosen for cuts.
  • The judge found deliberate targeting of certain states.
  • DHS (Department of Homeland Security) plans to contest the order.
• Notable Quote:

  “The judge pointed out that the administration had no clear formula for how it had come up with the reallocations and that the plaintiff states had been obviously and deliberately targeted for funding cuts.” — Nova Safo [01:48]

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2. Legal Ruling on H1B Visa Fees

[02:17–02:56]

• The News:
  A federal judge supports the administration’s authority to impose a new $100,000 fee on H1B work visas.
• The Details:
  • The U.S. Chamber of Commerce's lawsuit to block the fee was denied; an appeal may be forthcoming.
  • Court cited Congress’s delegation of immigration powers to the President as justification.
  • Ongoing legal challenges remain.

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3. BP Sells Castrol Lubricants Business

[02:57–03:31]

• The News:
  BP is selling its well-known Castrol motor oil business for $6 billion.
• Reason:
  • BP is raising cash to pay down debts and ramp up oil and gas production after a failed attempt to pivot to renewables.
  • BP’s CEO admits earlier faith in renewables was “misplaced optimism.”
• Stock Performance:
  • BP’s shares up marginally in pre-market trading.

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4. Food Insecurity & SNAP Benefits Uncertainty

[04:17–07:58]

Government Shutdown Fallout and SNAP (Food Stamps) Changes

• The Context:
  • After a government shutdown, millions risk losing SNAP (food stamp) benefits due to looming changes.
  • USDA may withhold funding from states that don’t share recipients’ names and immigration statuses.
  • Local food banks are under additional strain, especially during the holidays.
• Interview:
  • Guest: Charles Dennis, Executive Director, Feeding America, Kentucky’s Heartland

Interview Highlights

• Feeding America’s Role:

  • Works in 42 counties across central and western Kentucky
  • Partners with 200+ agencies; distributes ~20 million pounds of food annually
  • Programs support seniors and children; also collaborates with Kentucky farmers to distribute local produce

• Demand Trends:

  • Demand has “definitely increased” post-shutdown; some agencies see double the previous year’s clients.
  • Community support (food drives, donations, volunteer hours, state funding) helps meet increased need.

• Notable Quote:

  “Some of our agencies have reported seeing twice as many people as they had seen the year before. But I will give our communities credit. Every time there is a need, our communities step up.” — Charles Dennis [05:58]

• Risks of SNAP Cuts:

  • The scale of SNAP dwarfs food bank resources.
  • Example: In November, $20.5 million in SNAP benefits was distributed in Dennis’s 42-county region vs. food bank’s annual cash budget of $6 million.
  • Food banks cannot replace federal SNAP funding without a vast increase in resources.

• On Politicization of Aid:

  “I would encourage anyone come volunteer and come do the work with us. Once you get on the front lines and you really interact with those in the community, I think it gives you a new perspective.” — Charles Dennis [07:46]

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Notable Quotes & Moments

• Nova Safo on Disaster Relief Ruling:

  “The judge pointed out that the administration had no clear formula for how it had come up with the reallocations and that the plaintiff states had been obviously and deliberately targeted for funding cuts.” [01:48]

• Charles Dennis on Community Response:

  “Some of our agencies have reported seeing twice as many people as they had seen the year before. But I will give our communities credit. Every time there is a need, our communities step up.” [05:58]

• Charles Dennis on SNAP Cuts Reality:

  “In the month of November, in the 42 counties that we serve, there should have been $20.5 million that went in for SNAP benefits for one month. My yearly cash budget is $6 million.” [06:50]

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Important Timestamps

• 00:55–02:17: Federal judge orders restoration of disaster relief funds
• 02:17–02:56: Court upholds Trump administration's new H1B fee
• 02:57–03:31: BP’s $6B sale of Castrol lubricants business
• 04:17–07:58: Impact of SNAP uncertainties; interview with Charles Dennis, Feeding America, on food insecurity and local response

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Tone & Style

The reporting is straightforward, fact-driven, and concise, with a sense of urgency appropriate for timely economic news. The interview segment is empathetic and community-focused, offering insight into the real-world impact of economic policy decisions on vulnerable Americans.

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This summary captures all major news and insights from the episode, spotlighting legal developments, business moves, and the pressing issue of food security during the holidays—all in under 10 minutes.

Transcript

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[Sabri Benishore]

The Trump administration cannot withhold disaster relief from Marketplace. I'm Sabri Benishore in for David Brancaccio. A federal judge has ordered the Trump administration to restore homeland security funding to 12 states and the District of Columbia. The administration had held back hundreds of millions of dollars from what it called sanctuary jurisdictions marketplaces. Nova Safo has more.

[Nova Safo]

A Trump appointed federal judge said the reallocation of counterterrorism and disaster response funding, which happened in September, was arbitrary and capricious. The cuts affected programs intended to support local police and emergency response training and planning in urban areas. New York Attorney General Letitia James said the State had lost $100 million in funding from the Homeland Security grant program. James, along with attorneys general from Illinois and several other states, sued to restore the funding. The presiding federal judge ordered DHS to give back more than $200 million in grants because they are supposed to be handed out based on the amount of threat local jurisdictions face, not their standing with the. The judge pointed out that the administration had no clear formula for how it had come up with the reallocations and that the plaintiff states had been obviously and deliberately targeted for funding cuts. Responding to the ruling, DHS said it planned to fight the order. I'm Nova Safo for Marketplace.

[Sabri Benishore]

On another legal front, a federal judge has ruled the Trump administration can impose a $100,000 fee on new work visas known as H1BS, part of the administration's campaign to reduce immigration. In general, the judge said, the president does have this power because Congress granted it decades ago. The U.S. chamber of Commerce had sued to block the fee and could still appeal. There are also other ongoing legal challenges to the fee. British Petroleum is selling its lubricant business. Castrol makes motor oil, among other things. BP is selling the business off for $6 billion. BP is trying to raise money to lower its debts and increase oil and gas production. It had pivoted towards renewable energy several years ago, but investors did not like that and BP's CEO said it was based on misplaced optimism. So it's been walking that back and pivoting to fossil fuels once again. BP stock is up a tenth of a percent in pre market trading.

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[Sabri Benishore]

Weeks after the government shutdown came to an end, millions of Americans may be on the verge of losing access to public food benefits again. The Supplemental Nutrition Assistance Program, known as SNAP, or food stamps, is set to undergo major changes in the year ahead. And this comes also as the Department of Agriculture has signaled it could withhold funding to some states that refuse to give the names and immigration statuses of recipients to the federal government. All of this adds pressure to local food pantries already facing high demand this holiday season. For more on how one state is handling this, we're joined by Charles Dennis. He's executive director at Feeding America, Kentucky's Heartland. Welcome.

[Sponsor/Advertiser Voice]

Thank you.

[Sabri Benishore]

Can you tell us a little bit about the services you provide on a day to day basis?

[Sponsor/Advertiser Voice]

We work in 42 counties in Central and western Kentucky. We work with a little over 200 partner agencies and so we are distributing food on a daily basis through various programs like csfp, which is a senior box program. We have children's programs and so each year we distribute around 20 million pounds of food. Some of the things I'm most proud of is some of the work we do with Kentucky farmers. We have some state funding that goes to help provide food, fresh produce that is grown in Kentucky, and we distribute that through that partner agency network.

[Sabri Benishore]

We are in an economy where different slices of the American people, based on their income, are experiencing very different realities right now. With that in mind, what is demand like for food and your services this holiday season compared to last?

[Sponsor/Advertiser Voice]

Well, it's been definitely increased because of the government shutdown and a lot of the uncertainty around that. And so some of our agencies have reported seeing twice as many people as they had seen the year before. But I will give our communities credit. And every time there is a need, our communities step up.

[Sabri Benishore]

When you say that the community has stepped up, what do you mean exactly? What have people done?

[Sponsor/Advertiser Voice]

Those in the community stepped up with food drives, with donating money. Here in Kentucky, the governor distributed $5 million to the feeding Kentucky food banks. And on top of that, it was, you know, volunteer hours. And so here in Elizabethtown, we worked with the city of Elizabethtown, and we did special distributions leading up into the Thanksgiving holiday.

[Sabri Benishore]

If the administration follows through on plans to cut funding, what would that mean for you?

[Sponsor/Advertiser Voice]

Well, I think what we saw from the government shutdown was that SNAP illustrates the scale at which it helps with food insecurity. So in the month of November, in the 42 counties that we serve, there should have been $20.5 million that went in for SNAP benefits for one month. My yearly cash budget is $6 million. So as we're moving into our legislative session this next year at the beginning of 2020, that's the story we're going to be telling state legislators is, you know, we can't make up that difference unless, you know, we have a lot more resources.

[Sabri Benishore]

You know, welfare, food stamps, assistance in general. It has periodically been very politicized in the US do you think that has an effect on the way we think as a society about helping others?

[Sponsor/Advertiser Voice]

I would encourage anyone come volunteer and come do the work with us. Once you get on the front lines and you really interact with those in the community, I think he gives you a new perspective.

[Sabri Benishore]

Charles Dennis is executive director at Feeding America, Kentucky's Heartland. Thank you so much.

[Sponsor/Advertiser Voice]

Thank you.

[Sabri Benishore]

In New York, I'm Sabri Benishore with the Marketplace Morning Report.

[Marina Reis]

Foreign.

[Sabri Benishore]

Public Media.

[Marina Reis]

Hey, everyone. You already listened to Marketplace podcasts, so you know that it's important to understand how economic forces shape our lives. And that feels especially important now as we're all trying to make sense of the latest headlines. I'm Marina Reis, host of Marketplaces. This Is Uncomfortable, a show that explores how money bumps up against our relationships, our choices in the parts of life we don't always say aloud. And starting January 15th, we are back every single week. New stories, new questions, and the kind of conversations that make you feel less alone in this quickly changing economy. We're tackling questions like should I turn my hobby into a money making side hustle? How do I deal with layoff anxiety? Or what do we owe our parents financially? Don't miss an episode. Subscribe to this is Uncomfortable from Marketplace. Wherever you get your podcasts.