Justice Department to distribute grants after legal spat over sanctuary policies

By Sarah N. Lynch

WASHINGTON (Reuters) - The U.S. Justice Department said on Wednesday it is starting to distribute public safety grants to municipalities after the funds were put on hold pending a legal dispute over cities' "sanctuary" policies that protect illegal immigrants from deportation.

The announcement came after the U.S. Court of Appeals for the Seventh Circuit on Tuesday night temporarily lifted a nationwide court injunction that barred the department from withholding funds from cities that did not agree with the Trump administration's immigration policies.

(Reporting by Sarah N. Lynch; Editing by Bill Trott)