The city Bureau of Transportation filed a cease and desist order over the fence, which obstructs a downtown street, and is assessing the federal government $500 for every 15 minutes that it remains in place, Portland Commissioner Chloe Eudaly said Tuesday.
Vice President Mike Pence told Fox News Channel late on Tuesday the administration was talking with Oregon's Democratic governor, Kate Brown.
The deployment of the agents was authorized by the Trump administration to protect federal buildings.
OPB reported Sunday that several dozen additional out-of-town federal officers would be deploying to Portland, even as officials acknowledged internally that the federal presence has reinvigorated protests and caused the crowd size to swell.
Portland City Commissioner Chloe Eudaly stated on Tuesday that the erection of a fence around the federal courthouse is a "federal occupation" and announced that the city is fining the USA government $500 for every 15 minutes the fence remains in place.
"I assume there is $100,000 worth of physical damage, but we also lost $300,000 worth of property", said Alex Hofberg, president of Portland-based Watchworks Inc.
Militarised US agents in Portland continue to attack journalists and legal observers with riot-control munitions, despite a federal court order for them to stop.
The Trump administration has started talks with the OR governor's office and indicated that it would begin to draw down the presence of federal agents sent to quell two months of chaotic protests in Portland if the state stepped up its own enforcement, a senior White House official said Tuesday.
The ACLU accused federal agents of acting unlawfully in Portland.
"Anytime you shoot someone in the face and beat them with a baton, it's going to be criticized", one federal law enforcement official told OBP.
Floyd's death in police custody sparked protests throughout the United States over racial injustice.
The plaintiffs allege that the conduct of those federal agents, including away from the federal courthouse they were sent to protect, suggests they were actually carrying out a different DHS policy: "to intimidate and silence protesters due to their message".
"They have been tear-gassed night after night, left vomiting and unable to eat or sleep because of the toxic poison blasted at them", the complaint reads. They want what they described as a "cease-fire and removal of heightened federal forces from Portland".
News of the reinforcement comes after an Associated Press reporter gave his account of what it was like being barricaded inside the federal courthouse as it fell under attack by protesters, among reports that numerous U.S. Marshals standing guard have been injured in attacks from rioters.
Early Monday, federal agents fired what appeared to be tear gas, flash bangs, and pepper balls to clear a mass of people rioting outside the courthouse.
Protesters have tried nearly every night to tear down a fence erected to protect the building, set fires in the street and hurled fireworks, Molotov cocktails and bricks, rocks and bottles at the agents inside.