rki.news
Source: Xinhua
WASHINGTON, Oct. 2, 2025 – The administration of U.S. President Donald Trump has frozen nearly 26 billion U.S. dollars in funding to Democratic-led states, coinciding with the first day of the federal government shutdown.
White House budget director Russell Vought announced that approximately 8 billion dollars earmarked for climate-related programs—described by the administration as “Green New Scam funding”—has been suspended, impacting 16 states, most of them governed by Democrats.
In addition, the U.S. Department of Transportation (USDOT) has halted 18 billion dollars in infrastructure funds for New York. The department linked the decision to Senate Democratic Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, frequent targets of Trump’s criticism. “Thanks to the Chuck Schumer and Hakeem shutdown, USDOT’s review of New York’s unconstitutional practices will take more time,” the department said in a statement, citing furloughs of civil rights staff during the shutdown.
Democratic leaders sharply condemned the move. Schumer accused the administration of attempting to “blackmail” states and using ordinary Americans as “pawns” in political disputes.
The U.S. Senate on Wednesday failed to pass a short-term spending bill, triggering the first federal shutdown in nearly seven years. According to Reuters, roughly 750,000 federal employees were ordered not to report to work, while others began working without pay.
Trump defended the shutdown, saying it offered “a good chance” to cut spending on programs “we didn’t want.”