Trump singled out the the cities of Portland, Seattle, Washington, DC and New York City, which have experienced rioting and looting amid demonstrations against racial injustice following the death of George Floyd in May.
"My Administration will not allow Federal tax dollars to fund cities that allow themselves to deteriorate into lawless zones", Trump said in the memorandum released by the White House on Wednesday.
"To ensure that Federal funds are neither unduly wasted nor spent in a manner that directly violates our Government's promise to protect life, liberty, and property, it is imperative that the Federal Government review the use of Federal funds by jurisdictions that permit anarchy, violence, and destruction in America's cities", he said.
Trump also wants his administration to publish a list on the Justice Department website within the next two weeks identifying state and local jurisdictions that "have permitted violence and the destruction of property to persist".
In a month, Trump wants the Director of the Office of Management and Budget to recommend to the administration which "anarchist jurisdictions" should have restricted eligibility or disfavor of receiving federal grants, according to the memorandum.