Sen. Kevin de Leon (D-Los Angeles) addresses the Senate in Sacramento last year.California officials reacted with defiance Friday to a threat by federal officials to withhold some $20 million in criminal justice grants from the state and its counties as part of the dispute over so-called sanctuary city&nbsp;policies.&ldquo;It has become abundantly clear that Atty. Gen. [Jeff] Sessions and the Trump administration are basing their law enforcement policies on principles of white supremacy &mdash;&nbsp;not American values,&rdquo; Senate leader Kevin de Le&oacute;n&nbsp;(D-Los Angeles) said in a statement. &ldquo;Their constant and systematic targeting of diverse cities and states goes beyond constitutional norms and will be challenged at every level.&rdquo;De Le&oacute;n&rsquo;s statement on &ldquo;white supremacy&rdquo; drew an immediate rebuke from Republican Assemblyman James Gallagher of Yuba City.&ldquo;That&rsquo;s a ridiculous statement,&rdquo; Gallagher said.&ldquo;Nobody here is talking about the state becoming an immigration agency or doing ICE&rsquo;s job for them. It&rsquo;s about whether you comply with federal law,&rdquo; Gallagher added.The U.S. Department of Justice warned in a letter Friday that the grant funds could be jeopardized unless the state can verify in writing that the state and its&nbsp;counties and cities are not restricting the sharing of information with federal immigration authorities regarding&nbsp;the citizenship status of people in prison and jail cells.The state was given until June 30 to comply with the grant requirement, according to the letter Friday from&nbsp;Alan R. Hanson, acting assistant attorney general for the federal Office of Justice Programs.&ldquo;Failure to comply with this condition could result in the withholding of grant funds, suspension or termination of the grant, ineligibility for future [OJP]&nbsp;grants or subgrants, or other action, as appropriate,&rdquo; Hanson wrote.De Le&oacute;n on Friday released a letter to Sessions written by a private attorney hired by the Legislature who said the state and its cities are in compliance with the law.&ldquo;It is our understanding that these laws do not violate federal law and would not be subject to an enforcement action by the federal government,&rdquo; wrote attorney Daniel Shallman, whose firm, Covington &amp; Burling,&nbsp;has been hired to assist the state in communicating with the Trump administration. The legal strategy is being guided by&nbsp;former U.S. Atty. Gen. Eric H. Holder Jr.Shallman asked that the federal officials confirm that it will not take action against the state.&ldquo;If the Trump administration resorts to attempting to enforce its Order against California, the Legislature will use all available means to defend the rights, values and safety of Californians,&rdquo; Shallman wrote April 6.California received nearly $20 million in grants from the federal agency in the 2016 fiscal year, $18.2 million of which was distributed to criminal justice programs in 32 counties.The money is distributed to counties through&nbsp;the California Board of State and Community Corrections, which received the warning letter from the U.S. Department of Justice.The largest county grant was $3.59 million provided to Los Angeles County for a program that coordinates enforcement, prosecution and treatment for people and gangs &ldquo;that spread social malaise through illicit drug abuse and narcotics-related crime and gang culture,&rdquo; according to a board report.L.A. County Sheriff Jim McDonnell has opposed De Le&oacute;n's Senate Bill 54,&nbsp;&ldquo;sanctuary state&rdquo; legislation that would limit cooperation with immigration officials. San Francisco County officials have said they will limit their&nbsp;cooperation.San Francisco County received a $3-million federal grant for a program aimed at reducing recidivism for young people to block &ldquo;the school-to-prison pipeline,&rdquo; the state report said.Another $1 million went to San Bernardino County to cover costs involving the 2015 terrorist shooting that killed 14 people, and $396,310 went to a state prison program to reduce rapes of inmates.