The federal lawsuit is expected to be filed today. A day earlier Emanuel said Chicago won't "be blackmailed" into changing its values as a welcoming city.
Chicago officials say there are new qualifications for a grant requiring cities to share information with federal immigration authorities, which they allege are unconstitutional.
Chicago received over USD 2 million in such grants last year, which have been used for buying police vehicles.
Federal officials threatened to withhold funding for sanctuary cities, saying they don't comply with federal laws.