The prosecutor Brian Schwalb says it is a "hostile takeover" of the city's police force and an "insult" to the city's 700,000 inhabitants.
Minister of Justice Pam Bondi issued on Thursday an order to install a hand-picked official as provisional police chief in the city.
Schwalb has asked a federal court for a temporary injunction to revoke Bondi's decision. He also wants the court to make a decision that Trump's presidential decree exceeds his powers over the American capital.
According to Trump, crime has worsened in recent years in Washington DC and the city has been taken over by "violent gangs".
He says it is a "state of emergency" for safety.