The Trump administration has frozen $11 billion in federal funds for infrastructure projects in blue-state cities, framing the ongoing government shutdown as a direct result of Democratic intransigence. OMB Director Russell Vought made the announcement, linking the spending freeze to Democratic actions, which he claimed left him with no choice but to halt funding for several initiatives. The move adds to a growing list of financial disruptions caused by the shutdown, with over $28 billion in infrastructure and climate projects already frozen.
Among the affected projects are critical infrastructure developments in New York, Boston, San Francisco, and other Democratic strongholds, which are now facing delays and potential cancellation due to the frozen funding. The OMB cited the need to reorient federal priorities, stating that President Trump wants to ensure that Army Corps projects are not funded based on what he called unconstitutional DEI principles. This approach has drawn sharp criticism from state leaders, including New York Gov. Kathy Hochul, who dismissed the move as an attempt to politicize infrastructure spending.
As the shutdown continues, tensions between the Trump administration and Democratic lawmakers have reached new heights, with both sides blaming the other for the stalemate. Republicans continue to accuse Democrats of refusing to fund the budget to reinstate certain tax credits, while Democrats deny the claims and insist that the shutdown is a result of Republican obstruction. The situation remains far from resolution, with the government continuing to operate under a temporary spending agreement until November 21, but no long-term solution in sight.