Trump Freezes $28B In 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 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.

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.