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White House freezes $26 bn in funds for democratic states

US President Donald Trump’s administration has frozen funds worth $26 billion for projects in Democrat-run states on the first day of the federal government shutdown

News Arena Network - Washington D.C. - UPDATED: October 2, 2025, 09:41 AM - 2 min read

On Wednesday, the White House froze about $18 billion in payments needed to build transit projects in New York, home to Congress’s two top democrats


US President Donald Trump’s administration has frozen funds worth $26 billion for projects in Democrat-run states on the first day of the federal government shutdown.


The move is a response from the Trump government against states run by the opponents in the country.


On Wednesday, the White House froze about $18 billion in payments needed to build transit projects in New York, home to Congress’s two top democrats.


The freeze also includes almost $8 billion in green energy projects in 16 Democrat-run states, including California and Illinois.

 

Also Read: US govt shuts down after last-ditch vote fails in Senate


Congressman Chuck Schumer said Trump was targeting common Americans for partisan aims. 


"He is using the American people as pawns, threatening pain on the country as blackmail,” he said.


Trump’s own party man, Republican Senator Thom Tillis, expressed concern that the decision to freeze funds for New York could make it much more difficult for Congress to end the shutdown.


"They need to be really careful with that, because they can create a toxic environment here," Tillis said.


US Vice President JD Vance has warned that the administration might sack more federal workers if the stalemate continues for more than a few days.


At least 750,000 federal workers are expected to be furloughed since the shutdown started at midnight on Wednesday.


Trump's Republicans hold a 53-47 Senate majority. But, they need the support of at least seven Democrats to meet the Senate's 60-vote threshold for spending bills.

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