The Trump administration has frozen $26 billion in federal funding for Democratic-led states as the U.S. government shutdown continues without resolution.
The freeze covers $18 billion for transit projects in New York, home to Senate Majority Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries, and $8 billion for green-energy programs across 16 Democratic-controlled states, including California and Illinois. The move highlights President Donald Trump’s strategy of leveraging the shutdown to pressure political opponents.
Vice President JD Vance said the administration could expand federal job cuts if the shutdown persists, adding to the 300,000 positions already projected to be eliminated by December. Trump signaled his resolve in a post on Truth Social, writing that “billions of dollars can be saved.”
Now in its 15th occurrence since 1981, the shutdown has left 750,000 federal employees furloughed or working without pay. Services such as environmental cleanups and scientific research have been suspended, while the Department of Veterans Affairs confirmed burials would continue at national cemeteries but without headstones or maintenance.
Democrats criticized the funding freeze as politically motivated. Schumer accused the president of “using the American people as pawns,” while Jeffries warned of significant job losses tied to New York’s infrastructure projects.
Some Republicans also voiced unease. Senator Thom Tillis said halting infrastructure funds could “create a toxic environment,” though Senate GOP Leader John Thune dismissed the concerns, urging Democrats to “vote to open up the government and that issue goes away.”
Attempts to pass temporary funding measures failed in the Senate, where Republicans hold a 53–47 majority but still require Democratic support to meet the 60-vote threshold. Disagreement remains over $1.7 trillion in agency operations funding, roughly one-quarter of annual federal spending. Democrats also want safeguards to limit Trump’s ability to override spending laws, a practice they say he has repeated since returning to office.
The shutdown recalls the record 35-day standoff during Trump’s first term, when prolonged disruptions such as flight delays forced a breakthrough. With the national debt now at $37.5 trillion and the 2026 midterms approaching, both parties are locked in a political battle as public frustration grows.
