Trump freezes $26 billion for Democratic states, shutdown intensifies

President Donald Trump's administration used the government shutdown to exert political pressure and on Wednesday froze $26 billion that was primarily earmarked for Democratic-led states.

Eighteen billion was to go to public transportation projects in New York, and another eight billion to green energy programs in sixteen Democratic-led states. Vice President JD Vance also warned that if the crisis continues, federal employees should expect further layoffs—in addition to the 300,000 jobs that are to be cut by December.

The shutdown paralyzed scientific research, financial oversight, and environmental programs. 750,000 federal employees were forced into inactivity, and soldiers are working without pay. Democrats accused Trump of blackmail and attacking ordinary Americans.

Republicans said the solution was simple: government funding must be approved. However, the Senate again rejected efforts to keep the government running, as both the Republican proposal to extend funding until November 21 and the Democratic proposal to link funding to additional health benefits failed to pass the vote.

At the heart of the dispute is $1.7 trillion, which is a quarter of the federal budget. The longest government shutdown in the US lasted 35 days in 2018-2019 during Trump's first term.

(reuters, max)