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Rabat – US President Donald Trump’s administration on Wednesday froze $26 billion in federal funds designated for Democratic-led states, following through on his threat to use the ongoing government shutdown as a tool against political opponents.
The freeze halts $18 billion in transit projects in New York, home to the two top Democrats in Congress, and another $8 billion in green-energy projects across 16 Democratic-run states, including California and Illinois. The move shows Trump’s determination to consolidate control over the $7 trillion federal budget and punish Democratic strongholds.
“Billions of dollars can be saved,” Trump wrote on Truth Social late Wednesday, insisting the freeze was a matter of fiscal discipline.
Shutdown paralyzes federal agencies
The shutdown, the 15th since 1981, has shuttered large parts of the federal government, suspending scientific research, financial oversight, environmental cleanup, and a broad range of other services. Roughly 750,000 federal employees have been ordered not to work, while others, including troops and Border Patrol agents, are working without pay.
The Department of Veterans Affairs announced that burials at national cemeteries would continue, but headstones would not be erected and groundskeeping would cease. The US Patent and Trademark Office, in an internal letter seen by Reuters, said it would lay off 1% of its 14,000 workers.
Vice President JD Vance escalated the administration’s stance, warning that permanent layoffs could follow if the shutdown stretches beyond a few days. He suggested that as many as 300,000 federal workers could be out of their jobs by December, an unprecedented threat, as previous shutdowns have not resulted in lasting job cuts.
Democrats call move ‘blackmail’
Democrats swiftly condemned the administration’s decision. House Democratic Leader Hakeem Jeffries said the freeze would devastate New York’s infrastructure projects, throwing thousands out of work.
Senate Democratic Leader Chuck Schumer accused Trump of “using the American people as pawns, threatening pain on the country as blackmail.”
Republican Senator Thom Tillis expressed concern that withholding funds for transit and harbor projects would harden positions in Congress, making it even harder to end the standoff. But Senate Republican Leader John Thune dismissed criticism, saying, “Vote to open up the government and that issue goes away.”
Senate deadlock
The Senate once again failed to pass competing bills to reopen the government. A Republican plan to fund agencies through November 21 and a Democratic proposal tying funding to expanded health benefits both fell short of the 60-vote threshold. Republicans hold a 53-47 majority but need at least seven Democratic votes to advance spending legislation.
At the heart of the impasse is $1.7 trillion in agency operations, about one-quarter of the annual budget, while the remainder goes to health and retirement programs and interest payments on the ballooning $37.5 trillion debt.
Democrats are demanding safeguards to prevent Trump from ignoring spending bills he signs, a practice he has employed since returning to office. Republicans, meanwhile, accuse Democrats of caving to partisan pressure to oppose Trump, even as they claim Democrats have historically supported such spending.
Fallout and uncertainty
The political showdown is already drawing comparisons to the record 35-day shutdown of 2018-2019 during Trump’s first term, which ended only after mass flight delays crippled airports.
This time, the stakes are broader, with infrastructure, energy, and climate programs across Democratic-led states directly on the line. Several federal agencies even posted shutdown notices blaming the “radical left,” raising questions about potential violations of the Hatch Act, which bars partisan activity in government operations.
As the two sides dig in ahead of the 2026 midterm elections, the shutdown shows little sign of resolution. With federal workers in limbo, infrastructure projects stalled, and partisan rhetoric intensifying, Washington remains gridlocked while millions of Americans bear the brunt of political brinkmanship.
