The White House on Wednesday froze $26 billion in federal funds earmarked for Democratic-leaning states, escalating tensions in Washington as the government shutdown entered its third day.
President Donald Trump’s administration cut off $18 billion for transit projects in New York and $8 billion for green-energy programs across 16 Democratic-run states, including California and Illinois.
The funding freeze underscored Trump’s vow to use the shutdown to punish political opponents and assert greater control over the $7 trillion federal budget, a power traditionally overseen by Congress.
“Billions of dollars can be saved,” Trump wrote on Truth Social late Wednesday.
The shutdown, the 15th since 1981, has already forced 750,000 federal workers off the job, while others, including military personnel and border agents, are working without pay.
The Department of Veterans Affairs said it would continue burials at national cemeteries but suspend maintenance and headstone installations.
Vice President JD Vance warned that if the shutdown drags on, the administration could extend its purge of federal workers, with layoffs surpassing 300,000 by December.
The U.S. Patent and Trademark Office has already begun downsizing, with 1% of its 14,000 employees set to lose their jobs.
The funding freeze drew sharp condemnation from Democratic leaders. House Minority Leader Hakeem Jeffries said halting transit projects in his home state of New York would cost thousands of jobs.
Senate Majority Leader Chuck Schumer called the move “blackmail,” accusing Trump of using ordinary Americans as pawns.
Republicans were divided. Senator Thom Tillis cautioned that targeting New York’s infrastructure funds could complicate negotiations to end the shutdown, while Senate GOP Leader John Thune dismissed the concerns: “Vote to open up the government and that issue goes away.”
Meanwhile, the Senate once again failed to pass competing funding measures. Republicans’ proposal to extend government operations through November 21 fell short of the 60 votes needed, as did a Democratic plan that paired spending with expanded health benefits.
At the heart of the impasse is $1.7 trillion for agency operations, roughly a quarter of the federal budget, alongside disputes over health care and Trump’s authority to bypass spending bills.
A bipartisan group of senators huddled on the floor Wednesday in search of a compromise, but neither side appeared ready to retreat.
The shutdown has revived memories of the 2018-2019 impasse, the longest in U.S. history, which ended only after widespread flight delays. With the stakes high ahead of the 2026 midterm elections, both parties are now racing to pin blame on the other.
Source: Reuters
Written By Rodney Mbua
