Trump Govt Blocks Funding to Democratic States Amid Shutdown

The United States (US) government under President Donald Trump froze $26 billion in federal funds directed at Democratic-leaning states.

The cuts included $18 billion earmarked for transit projects in New York—home to the top two Democratic leaders in Congress—and another $8 billion for green-energy initiatives across 16 Democratic-run states, including California and Illinois.

On October 1, Russell T. Vought, the White House budget director, announced that the administration would freeze $26 billion in infrastructure funding earmarked for states led by Democrats.

Vought said $18 billion allocated for transport projects in New York City was frozen because it was tied to what he described as “unconstitutional DEI principles.”

After the Senate once again rejected competing funding measures, Republicans quickly moved to blame Democrats for the shutdown.

“Democrats have officially voted to close the government,” House Speaker Mike Johnson, a Republican, said on social media.

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Trump Govt Blocks Funding to Democratic States Amid Shutdown

At the same time, Trump wrote on Truth Social late Wednesday that the move could save billions of dollars.

“Billions of dollars can be saved,” Trump said.

U.S. lawmakers remain at an impasse over ending the partial government shutdown, with Republicans and Democrats once again blocking rival stopgap spending measures in the Senate for a second consecutive day.

On Wednesday, senators rejected a Republican proposal to extend government funding until November 21 in a 55–45 vote.

The stalemate has left the federal government partially shut, halting some services while requiring essential employees to continue working without pay until the crisis is resolved.

Also Read: United States Government Shuts Down; Here is What It Means

Vance Warns of Layoffs

Additionally, Vice President J.D. Vance stated that the White House intends to use the government shutdown as an opportunity to reduce the federal bureaucracy, resulting in many employees losing their jobs.

“We are going to have to lay some people off if the shutdown continues. We don’t like that. We don’t necessarily want to do it, but we’re going to do what we have to do to keep the American people’s essential services continuing to run,” Vance said.

Vance dismissed claims that workers were being targeted for their political views but admitted there was uncertainty over who could face layoffs.

“We haven’t made any final decisions about specific employees,” he said.

“What we are saying is that extraordinary steps may be necessary, particularly if the shutdown continues for long.”

The White House abruptly dismissed most members of the council advising the National Endowment for the Humanities on Wednesday, leaving only four Trump appointees in place.

In an email sent that morning, council members were informed: “On behalf of President Donald J. Trump, I am writing to inform you that your position as a member of the National Council on the Humanities is terminated, effective immediately. Thank you for your service.”

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