Trump Freezes $26 Billion in Democratic States as Government Shutdown Deepens

The Trump administration froze $26 billion in Democratic-led projects as the shutdown began, sparking backlash. About 750,000 federal workers face furloughs, services are halted, and the Senate remains deadlocked on funding.

The Trump administration has announced the freezing of approximately $26 billion in funding for projects located in states that traditionally lean Democratic, on the very first day of the federal government shutdown. The decision was revealed on Wednesday, with the White House confirming that the freeze targets both transit projects and green energy initiatives in several key states.

According to the administration, about $18 billion in payments designated for the construction of major transit projects in New York will be withheld. New York is notably the home state of the two most powerful Democratic leaders in Congress, which has fueled criticism that the move is politically motivated. In addition to the transit funding halt, nearly $8 billion allocated for renewable and green energy projects in 16 Democratic-led states, including California and Illinois, has also been put on hold.

The decision drew immediate and sharp criticism from Senate Majority Leader Chuck Schumer, a Democrat from New York, who accused President Trump of deliberately using ordinary Americans as leverage in a political battle. Schumer denounced the action as a form of blackmail, stating that the administration was threatening unnecessary pain and hardship on the nation for partisan objectives.

Even some Republicans expressed concern about the administration’s tactics. Senator Thom Tillis cautioned that the suspension of New York transit funding could make it even more difficult for Congress to negotiate an end to the shutdown. He warned that such a strategy might create a toxic environment in Washington, further complicating efforts to restore government operations.

Meanwhile, Vice President JD Vance issued a stark warning that the administration could go further by laying off federal employees if the shutdown persists for more than a few days. Historically, previous government shutdowns have not resulted in permanent job losses, but Vance’s remarks suggested that this time could be different.

The shutdown, which took effect at midnight on Wednesday, has already led to roughly 750,000 federal workers being furloughed. Others, such as military personnel and Border Patrol agents, are continuing to work without pay, enduring financial strain while still fulfilling their duties. In addition to the impact on federal workers, a wide range of critical government services and functions have been disrupted. Scientific research, financial oversight programs, environmental cleanup efforts, and other essential activities have been suspended, further highlighting the far-reaching consequences of the funding impasse.

On the same day, the Senate failed once again to agree on legislation to reopen the government. A Republican-backed bill that proposed funding through November 21 did not pass, nor did a Democratic measure that sought to combine funding with expanded health care benefits. Despite holding a 53-47 majority in the Senate, Republicans still require the support of at least seven Democrats to reach the 60-vote threshold needed to pass spending bills, leaving the chamber in a stalemate.

This shutdown marks the first closure of the United States federal government in nearly seven years. The most recent one occurred during Donald Trump’s first term in office, lasting for 35 days between 2018 and 2019. That standoff became the longest government shutdown in American history, and the current situation has raised fears of a similarly prolonged crisis.