WASHINGTON (BN24) — President Donald Trump’s administration froze $26 billion in funding for Democratic-leaning states Wednesday, following through on threats to use the government shutdown to target Democratic priorities while approximately 750,000 federal workers faced furloughs.
The targeted programs included $18 billion for transit projects in New York, home to Congress’s top two Democrats, and $8 billion for green-energy projects across 16 Democratic-run states including California and Illinois. Vice President JD Vance warned that the administration might extend its purge of federal workers if the shutdown lasts more than a few days.
The moves demonstrated Trump’s willingness to leverage the shutdown to punish political opponents and extend his control over the $7 trillion federal budget, which the U.S. Constitution establishes as Congress’s domain. The pressure tactics emerged as the 15th government shutdown since 1981 suspended scientific research, financial oversight, environmental cleanup efforts and numerous other activities.
Approximately 750,000 federal workers were ordered not to work, while others including military personnel and Border Patrol agents began working without pay. The Department of Veterans Affairs announced it would provide burials at national cemeteries but would not erect headstones or maintain grounds.
Vance stated at a White House briefing that the administration would resort to layoffs if the shutdown extends beyond a few days, adding to the 300,000 workers scheduled for removal by December. Previous shutdowns have not resulted in permanent layoffs, marking this approach as unprecedented.
The U.S. Patent and Trademark Office announced plans to lay off one percent of its 14,000 employees, according to an internal letter obtained by Reuters.
House Democratic leader Hakeem Jeffries said the funding freeze for subway and harbor projects in his home state of New York would displace thousands of workers. Senate Democratic leader Chuck Schumer, also representing New York, accused Trump of targeting regular Americans for partisan purposes.
“He is using the American people as pawns, threatening pain on the country as blackmail,” Schumer said, characterizing the funding freeze as political hostage-taking.
Republican Senator Thom Tillis expressed concern that freezing infrastructure funds for New York could complicate efforts to resolve the shutdown. “They need to be really careful with that, because they can create a toxic environment here,” Tillis said. “So hopefully they’re working with the leader, and the leader with them, on not creating more work to get us out of this posture.”
Republican Senate Leader John Thune dismissed concerns about the spending freeze constituting hostage-taking. “Well, vote to open up the government and that issue goes away, right? I mean, it’s pretty straightforward,” he said during a press conference.
The Senate again rejected efforts to maintain government operations as both a Republican proposal funding the government through November 21 and a Democratic measure pairing funding with additional health benefits failed in floor votes.
Trump’s Republicans hold a 53-47 Senate majority but require support from at least seven of Schumer’s Democrats to meet the chamber’s 60-vote threshold for spending bills. At issue is $1.7 trillion for agency operations, representing roughly one-quarter of annual spending, with the remainder allocated to health and retirement programs and interest payments on the growing $37.5 trillion national debt.
A bipartisan group of senators conferred on the floor during voting, attempting to identify a path forward. “I want to see that a deal is a deal, and I would like to see the Republicans make a commitment to work with us on health care,” said Senator Tim Kaine, a Virginia Democrat representing numerous federal workers near the nation’s capital.
Democrats also seek guarantees that Trump will not ignore spending bills he signs into law, as he has repeatedly done since returning to office. Both parties attempted to assign blame to opponents, positioning themselves ahead of 2026 midterm elections that will determine congressional control.
Democrats argued Republicans bear responsibility for the disruption given their control of Washington’s power structures. Republicans claimed Democrats were surrendering to partisan pressures to oppose Trump despite routinely supporting spending bills previously. Republicans repeated a false claim that Democratic proposals would extend health coverage to people in the country illegally, though the nonpartisan Congressional Budget Office stated the Democratic plan would only restore coverage to certain legal immigrant categories including asylum seekers and work visa holders.
Several government agencies posted website notices blaming the “radical left” for the shutdown, potentially violating the Hatch Act designed to insulate routine government services from partisan politics.
Office of Management and Budget Director Russ Vought announced Wednesday that the administration would cancel $8 billion in climate-related projects across 16 states, representing the latest funding cut following the overnight government shutdown. All affected states voted for former Vice President Kamala Harris in the 2024 presidential election and have Democratic Senate representation.
“Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being cancelled,” Vought wrote on X, stating the Department of Energy would provide additional details.
The impacted projects span California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont and Washington. Fourteen states have Democratic governors while New Hampshire and Vermont have Republican leadership.
The climate project announcement followed the administration’s pause of approximately $18 billion in New York City infrastructure projects. Vought said the initiatives, specifically the Hudson Tunnel and Second Avenue Subway, were suspended “to ensure funding is not flowing based on unconstitutional DEI principles,” referencing diversity, equity and inclusion policies.
The Transportation Department issued letters informing New York officials that projects faced administrative review “to determine whether any unconstitutional practices are occurring,” stating the examination “will take more time” due to the shutdown.
“Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review,” the Transportation Department stated.
New York represents the home states of Congress’s top two Democrats, Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, suggesting potential political motivation behind the targeted funding freezes.
The longest U.S. government shutdown, stretching 35 days during 2018-2019 in Trump’s first term, ended partly after flight delays caused by air traffic controllers calling in sick demonstrated the practical consequences of extended funding lapses.
