Washington: Trump Administration Freezes $26 Billion for Democratic States Amid Shutdown
The Trump administration has put a hold on $26 billion intended for states that typically support Democrats, following through on threats to leverage the government shutdown to counter Democratic initiatives.
The freeze includes $18 billion aimed at transit projects in New York, which is represented by Congress’s top two Democrats. Additionally, there is $8 billion on hold for green-energy projects in 16 states led by Democrats, such as California and Illinois.
Vice President JD Vance cautioned that if the shutdown persists for more than a few days, the administration may consider further layoffs of federal workers. This move signals Trump’s intention to use the shutdown as a way to assert his influence over budget decisions, traditionally under Congress’s control.
On his social media platform, Trump noted the potential for saving billions through this freeze.
This government shutdown marks the 15th since 1981, causing the suspension of scientific research, financial oversight, and various environmental initiatives. Approximately 750,000 federal employees are not permitted to work, while some, including military personnel and Border Patrol agents, are required to work without pay. The Department of Veterans Affairs stated it will provide burials in national cemeteries but will not be able to maintain the grounds.
Vance indicated at a White House press briefing that prolonged shutdowns could force layoffs, adding to the already anticipated loss of 300,000 federal positions by December. Historically, previous shutdowns have not led to permanent job losses.
The U.S. Patent and Trademark Office plans to lay off 1% of its 14,000 employees due to the funding freeze.
Schumer Accuses Administration of ‘Blackmail’
Top Democratic leaders have voiced strong criticism of the funding freeze. Hakeem Jeffries, a leading Democrat in the House, stated that halting subway and harbor funds in New York could result in significant job losses. Chuck Schumer, also from New York, accused Trump of using everyday Americans as pawns, calling the tactic “blackmail.”
Republican Senator Thom Tillis expressed concern that freezing funds for essential infrastructure might complicate efforts to end the shutdown. “This could create a toxic environment,” he warned, hoping for cooperation among leaders to resolve the situation.
Senate Minority Leader John Thune dismissed claims of hostage-taking related to the spending freeze, suggesting that opening the government would resolve the issue.
Jeffries noted a lack of communication from the White House since a meeting with Trump earlier in the week, stating, “Clearly, they wanted to shut the government down.”
Senate Votes Fail Again
In the Senate, attempts to keep the government operating were thwarted once more, with both a Republican funding proposal and a Democratic initiative to pair funding with healthcare benefits failing to pass.
Trump’s Republican party holds a slim majority in the Senate, but they require support from at least seven Democrats to reach the necessary 60 votes for spending measures. The current funding issue involves $1.7 trillion allocated for agency operations, which represents about a quarter of annual federal spending.
Bipartisan Efforts Unfold
As members of both parties gather to discuss possible solutions, Democratic Senator Tim Kaine expressed a desire for cooperation, emphasizing the need to commit to health care negotiations. However, Democrats are also aiming to ensure that Trump cannot sidestep spending agreements he signs.
In a contentious atmosphere leading up to the 2026 midterm elections, both parties are seeking to place blame on each other. Democrats accuse Republicans of causing the shutdown, while Republicans claim that Democrats are yielding to partisan pressures against Trump.
Some government agencies have posted messages attributing the shutdown to the “radical left,” which may run afoul of regulations meant to keep government functions separate from political agendas.
The longest government shutdown in U.S. history occurred during Trump’s first term, lasting 35 days and prompted in part by air traffic disruptions due to controller absences.
