The U.S. government shutdown entered another day without resolution as the White House moved to freeze billions of dollars in funding to Democratic-led states, drawing sharp accusations from congressional Democrats that President Donald Trump is weaponizing the impasse for political retribution.
The Senate on Wednesday rejected competing stopgap spending measures for the second day in a row, leaving no path forward to reopen the government. The Republican bill, which would have extended funding until November 21, failed in a 55-45 vote. A Democratic-backed proposal that tied government funding to $1.5 trillion in new healthcare spending also collapsed, with all Republicans voting against it.
As the stalemate deepened, the administration escalated its strategy. Russell T. Vought, the White House budget director, said $26 billion in previously approved funds were being frozen or cancelled, including $18 billion for New York transportation projects and $8 billion earmarked for clean energy programs across 16 Democratic states. On social media, Vought called the climate-related funds "Green New Scam funding."
The moves immediately triggered outrage among Democratic leaders. Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries issued a joint statement condemning the decision, saying, "By blocking billions of bipartisan infrastructure dollars for the Gateway Tunnel and Second Avenue Subway, Trump isn't hurting Democrats - he's hurting the nurses, teachers, first responders, and everyday commuters from New York and New Jersey who rely on safe, reliable transit."
Sen. Patty Murray of Washington went further, accusing the administration of operating like a crime syndicate. "We're less than a day into this shutdown, and Trump [and] Vought are illegally punishing Democrat-led states," she wrote. "This administration is clearly salivating at the opportunity to hurt people and using the shutdown they caused as the pretext to do it. These mafioso tactics will not work."
The White House, however, defended the funding freeze as a necessary review of what it described as unconstitutional or wasteful spending. Vought said infrastructure dollars for New York City were blocked to prevent delivery based on "unconstitutional DEI principles," a reference to diversity, equity and inclusion standards opposed by conservatives.
The unprecedented targeting of entire states marks a shift from Trump's earlier tactics. In his first term, shutdowns were used to pressure Congress on immigration and border funding, not to penalize jurisdictions that voted against him. The latest moves highlight how the administration is using the fiscal crisis to pursue budget cuts while amplifying partisan divides.
The shutdown has already forced essential federal employees to work without pay, halted key services and raised fears of mass layoffs. Trump officials signaled that downsizing the federal workforce could be imminent if the standoff drags on.