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Always cool to see right-wing propaganda on hacker news first thing in the morning.
Is there a significance to this designation?
It effects Federal funding these cities and states can receive.
No shout out to my hometown Minneapolis??
Some context beyond the Justice Department memo is probably useful:

https://www.nbcnewyork.com/news/local/doj-designates-new-yor...

https://nypost.com/2020/09/21/nyc-branded-an-anarchist-juris...

In short, the Trump administration plans to defund these cities because they permit violence and destruction (...whatever that means). They don't actually have the legal right to do that, so if they follow through with this there will almost definitely be a lengthy court battle. If there is any sanity left in the US the Trump administration will lose in court, but it's not clear what will happen to federal funding in the meantime.

What are they going to do, invade their own citizens a month before election? They have no leverage even if there were veracity to their claims and a legal basis for DOJ to interfere.