Trump Admin Cancels More Than $11 Billion in Blue State Projects/. Newslooks/ WASHINGTON/ J. Mansour/ morning Edition/ The White House paused $11 billion in Army Corps projects, primarily in Democrat-led states, amid an escalating government shutdown. OMB Director Russ Vought said the projects may be permanently canceled, citing fiscal strain and political opposition. Key infrastructure initiatives in New York and California are among those affected.
White House Halts Blue-State Projects: Quick Looks
- $11 billion in Army Corps of Engineers projects put on hold.
- Most affected states are led by Democratic governors.
- Projects under review include wastewater upgrades and public infrastructure.
- Over half of the paused funding targeted New York.
- OMB Director Russ Vought announced the decision via X (formerly Twitter).
- The action follows ongoing government shutdown with no resolution in sight.
- President Trump vowed more cuts to “Democrat programs.”
- Affected states include CA, NY, IL, OR, MD, NJ, CO, NM, and more.
- Some projects are located in sanctuary cities, per OMB.
- GOP-led New Hampshire also included, despite governor’s resistance to redistricting.
Trump Admin Cancels More Than $11 Billion in Blue State Projects
Deep Look
WASHINGTON — The Trump administration has halted a new wave of federally funded Army Corps of Engineers projects totaling $11 billion, with a heavy focus on Democrat-led states. The announcement, made Friday via a social media post by White House Office of Management and Budget Director Russ Vought, signals an aggressive pivot in federal spending during an intensifying government shutdown.
“This is a reassessment of lower-priority projects, especially in states that continue to reject federal guidance,” Vought wrote on X, formerly Twitter. He added that the projects would now be considered for cancellation, a move in line with the administration’s broader effort to reshape the federal budget amid congressional gridlock.
The dozen states impacted include California, New York, Illinois, Maryland, Oregon, New Mexico, Massachusetts, New Jersey, Rhode Island, Colorado, Delaware, and New Hampshire. The latter, despite being led by Republican Governor Kelly Ayotte, has seen political tension with the White House over her resistance to GOP-led redistricting plans.
According to an OMB spokesperson, a significant number of the halted projects are located in sanctuary cities, which limit cooperation with federal immigration enforcement.
The spokesperson emphasized that “taxpayer dollars should not subsidize infrastructure in states ignoring federal law.”
Among the paused initiatives:
- San Francisco, California: A waterfront revitalization project aimed at replacing an aging pier with a public park.
- New York City: A large-scale plan to reconstruct wastewater treatment and enhance water supply systems.
- Additional projects in Maryland and New Jersey focused on coastal flood management and storm infrastructure.
Over 50% of the total paused funding was allocated to New York, the home state of Democratic congressional leaders Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries. Their political prominence, according to critics, makes the decision appear as much symbolic as financial.
This announcement follows a similar move last Friday when Vought declared, “The RIFs have begun,” referring to Reductions in Force — code for layoffs of federal employees. Both actions are part of a broader administrative response to the ongoing government shutdown, now entering its fourth workweek with little sign of compromise between the Republican White House and Democratic lawmakers.
President Donald Trump has been candid about his strategy. Speaking earlier this week, he promised more cuts to what he called “Democrat programs,” warning that some programs “will never come back.”
“These are the most egregious, socialist, semi-communist — probably not full communist — programs,” Trump said during a White House press briefing. “If Democrats continue to obstruct a deal, we will continue to close them down.”
Though federal infrastructure projects often enjoy bipartisan support, the Trump administration has increasingly aligned such funding with political priorities — rewarding allies and punishing adversaries. The Army Corps of Engineers, a branch of the Department of Defense, oversees civil and military engineering efforts across the country and plays a vital role in flood control, public works, and disaster response.
Critics argue that targeting infrastructure development — particularly in densely populated, urban states — undermines long-term national resilience. Still, the administration insists that ongoing fiscal pressures from the shutdown justify a review of nonessential projects.
“This is about financial discipline and making hard choices,” the OMB spokesperson said. “The Democrat shutdown has drained the Army Corps of Engineers’ ability to manage billions in spending.”
The impact on local governments and residents could be significant. Many halted projects addressed critical needs, including aging water systems, climate resilience infrastructure, and coastal protections. Officials in affected states have yet to issue full responses, but several are expected to challenge the pause legally or politically in the coming weeks.
As the shutdown stretches on, observers anticipate that federal agencies will continue scaling back or freezing new spending in Democratic strongholds. This raises broader questions about the long-term politicization of federal resource allocation, especially with the 2026 midterms looming.
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