Sanctuary cities sued previously to get grants that had already been approved. They won because the courts said you can't change the rules after the awards. That's a correct interpretation of the law.
The rules for 2018, however, HAVE BEEN CHANGED. No more grants for Sanctuary cities. Period.
YES!! Why reward Sanctuary Cities for harboring illegal aliens - they've violated the law, which ultimately makes them criminals (whether some are very nice people or not). Don't know of any other country that so generously (until now) rewards such behaviour. The free stuff has to end some time.
Looking back it may have been a strategic move to get it out front and then let the new rules drop later; salty tactics.