The White House says the order creates a national list of sanctuary cities.
It also requires the attorney general and Department of Homeland Security to seek court orders to make cities comply with certain immigration laws.
How will Trump's sanctuary city order impact Chicago and Illinois?
The Trump administration is already facing legal challenges to its efforts to target sanctuary cities.
A federal judge in California barred the Trump administration from denying or conditioning the use of federal funds to "sanctuary" jurisdictions on Thursday, saying that portions of Trump's executive orders were unconstitutional.
The Associated Press contributed to this report.