Trump Freezes $2.78B In IL Funding To Pressure Democrats To End Shutdown: Report

The Trump administration has frozen or canceled nearly $28 billion in approved funding for Democratic-led congressional districts, including nearly $3 billion in Illinois grants, as it seeks to pressure an end to the government shutdown, according to an analysis by The New York Times.

Although the move is widely interpreted as a punitive measure against Democrats, about $738.7 million in funding in 14 Republican-led congressional districts was also paused, according to The Times’ examination of federal funding records.

Overall, the state of Illinois has lost $2.78 billion in federal funding, with 36 grants frozen or canceled. All but one congressional district affected by the freeze is represented by Democrats, with the exception of the 16th District, represented by Republican Rep. Darin LaHood, which lost $2.9 million in funding.

Dist. 7, which includes Chicago and parts of several neighboring suburbs, was hit the hardest by Trump's decision, with $2.37 billion in funding frozen or canceled. Before the government shutdown, Rep. Danny Davis, D-IL, slammed Trump's "Big, Beautiful Bill," saying its consequences have devastated residents in his district.

Davis warned that if healthcare is cut further, over 535,000 people stand to lose health insurance and premiums could rise by nearly $900.

"These reckless cuts will push families closer to poverty and jeopardize access to critical health services," Davis said in a statement. "These choices are not about fiscal responsibility—they are about shifting resources away from working families and into the pockets of the wealthiest Americans."

In the 3rd District, represented by Democratic Rep. Delia Ramirez, $365.4 million in funding is being cut or frozen. That district includes parts of DuPage and Cook counties, including the northwest side of Chicago.

Illinoisans also stand to lose food assistance with cuts to SNAP and other nutrition programs that help low-income residents. "With every passing day, the Republican shutdown puts food programs like SNAP, WIC, and Meals on Wheels at risk," Ramirez said. "Jeopardizing food programs only hurts the people who rely on them most - children, seniors and people with disabilities."

Critics say the cancellation of the projects is an escalation of President Donald Trump’s use of executive power to disadvantage Democratic-leaning states and benefit Republican-leaning ones. He has threatened further cuts if the stalemate continues, describing it as an opportunity “handed to us on a silver platter” to lay off more federal workers and gut funding, perhaps permanently, The Times reported.

The halted funding, secured after years of lobbying, included new investments in clean energy, electric grid upgrades and transportation infrastructure. In some cases, funding had already been partially dispersed, and work on the projects had already begun.

The Trump administration has withheld billions in federal aid from New York and Chicago, targeting transportation and security funding.

In New York, $18 billion for the Second Avenue subway and Hudson River tunnel was paused, while Chicago saw $2.1 billion for transit upgrades halted.

The White House justified the freezes by citing reviews of the cities’ contracting policies, scrutinizing decisions based on race, diversity, or inclusion. The Trump administration has long been at odds with Democratic leaders from both states, including Rep. Hakeem Jeffries and Sen. Chuck Schumer in New York, and Mayor Brandon Johnson and Gov. JB Pritzker in Illinois.

Two days into the shutdown, the Trump administration cut $7.6 billion from 223 energy projects across 16 states, predominantly Democratic-led. These cancellations, targeting climate and infrastructure funding from the Biden administration, were deemed “not economically viable” or misaligned with Trump's energy policy.

Critics say the cuts are politically motivated and counter to bipartisan goals like preventing power outages and modernizing energy grids, as well as investments in newer sources like hydrogen.