Montana AG Knudsen issued a cease-and-desist ordering Helena to rescind its sanctuary-city resolution under state grant-funding threat

On March 10, 2026, Montana Attorney General Austin Knudsen sent the City of Helena a formal cease-and-desist letter declaring the city's sanctuary-city resolution a "blatant violation" of Montana's 2021 law banning sanctuary jurisdictions (Montana Code Ann. § 2-1-601 et seq.) and demanding the Helena City Commission rescind or amend the policy within 15 days.

Helena's resolution, passed January 26, 2026, with overwhelming public support, affirmed existing policies restricting city employees from disclosing residents' immigration status to outside entities without a court order and directed the Helena Police Department not to stop, pursue, or detain anyone based solely on immigration status. Knudsen identified at least two provisions he said interfered with the state's sanctuary-jurisdiction statute, writing that the overall resolution would have a "chilling effect" on cooperation between city police and federal immigration enforcement agencies.

The letter cited severe financial consequences for non-compliance. Under Montana's 2021 sanctuary-jurisdiction law, cities found in violation face fines of $10,000 for every five-day period they remain out of compliance, as well as the potential withholding of state grant funds including distributions from the Montana coal board. Helena's financial director reported that the city had approximately $14 million in state and federal funding at stake in the prior fiscal year.

Knudsen and Governor Greg Gianforte had jointly announced a formal investigation into the resolution on February 11, 2026, stemming from the 2021 law Gianforte had signed. The cease-and-desist letter also directed the city to produce compliance documentation and all correspondence related to the resolution within the same 15-day window.

Updates

2026-03-26 — Helena city commission voted 4–1 to rescind the sanctuary-city resolution under financial pressure [2]

After a six-hour special meeting in the Helena Civic Center attended by roughly 200 people in person — during which nearly a hundred testified about local control, budget risk, and democratic accountability — Helena's city commission voted 4–1 to rescind the January resolution. Mayor Emily Dean described the situation as "infuriating," saying the city was being "baited into a fight that is rigged." The commission also directed city attorneys to redraft a revised resolution and invite Knudsen's office to consult on the new language.

2026-04-07 — Helena submitted formal legal response disputing AG's interpretation and offering a softened resolution [3]

Helena submitted a formal legal response through outside counsel, disputing Knudsen's interpretation of the resolution and submitting a revised draft that softened several provisions — including dropping language requiring federal agents to unmask — while explicitly stating the city "is not a 'sanctuary city.'" The city requested a 14-day response from Knudsen's office.