Sanctuary cities define themselves as metropoles that refuse to share information, personnel, and facilities with federal immigration authorities to police immigrants. While research suggests that sanctuary cities contest the criminalization of migration, a growing literature depicts how these urban sanctuaries could, in practice, perpetuate hierarchies and exclusionary politics against noncitizens. Yet, most of these studies conceive of urban sanctuary as local policies designed to challenge federal power and, thus, fail to fully capture how sanctuary policies could actually rely on the criminalization of migration to govern cities’ political problems. Drawing upon 1,900 pages of archival materials and 100 newspaper articles, this article takes the case of Chicago to study how and why the urban sanctuary expands immigrants’ rights while reinforcing policing with punitive implications for Latino “undeserving” noncitizens. As a form of racialized governance, I argue that Chicago’s sanctuary policies activate a set of punitive exceptions that—in response to distinct political urgencies—allow law and immigration enforcement to converge and control Latino undocumented workers, “criminals,” and “gangs.” This study not only challenges the premise that sanctuary cities necessarily resist federal power but also illustrates how they could strengthen the legitimacy of the state and racialized police power.