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The Trump administration’s funds workplace advised FOX Enterprise Wednesday that it’s canceling $1.5 billion in blue-state grants, citing considerations about how funds are being managed in California, Colorado, Illinois and Minnesota.
The Workplace of Administration and Price range (OMB) mentioned it should goal tasks on the Division of Transportation (DOT) and the Facilities for Illness Management and Prevention (CDC), chopping $943 million and $602 million, respectively.
An OMB spokesperson advised the New York Put up that the states have been being focused as a result of “waste and mismanagement” of taxpayer funds.
The announcement follows OMB launching a sweeping overview of federal funding for a number of Democratic-led states in January, which required states to submit detailed receipts proving no funds have been being mishandled, CBS Information reported.
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The Workplace of Administration and Price range is planning to cancel over $1 billion in grants from the Division of Transportation (DOT) and the Facilities for Illness Management and Prevention (CDC). (Stephen Goin / Fox Information)
The initiative displays a shift in fiscal coverage towards “America First” priorities by withholding funds from states that preserve sanctuary insurance policies or tasks the administration deems wasteful.
Issues cited embody tax assist for unlawful immigrants, inexperienced initiatives and alleged fraud in sure states, such because the $250 million COVID-era rip-off in Minnesota uncovered within the “Feeding Our Future” case.
A number of DOT and CDC packages in blue states could possibly be affected by the funding cuts, together with equity-focused infrastructure tasks and public well being initiatives the OMB beforehand criticized as “social engineering” fairly than legit public well being efforts.
“The usage of Federal sources to advance Marxist fairness, transgenderism, and Inexperienced New Deal social engineering insurance policies is a waste of taxpayer {dollars} that doesn’t enhance the day-to-day lives of these we serve,” the OMB beforehand mentioned in 2025.
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The Trump administration’s funds workplace is canceling $1.5 billion in funding for DOT and CDC tasks in 4 blue states over funding misuse considerations. (Al Drago/Bloomberg by way of Getty Photographs / Getty Photographs)
In January, Trump halted greater than $10 billion in federal childcare and social companies funding to 4 states, in addition to New York, over considerations that some advantages had been fraudulently funneled to noncitizens, the Put up reported.
In California, San Francisco was slated to obtain $15 million to broaden its electrical automobile charging community, with a deal with “deprived communities which can be marginalized by underinvestment and overburdened by air pollution,” metropolis officers mentioned in 2025.
Equally, the California Lowering Disparities Mission, an equity-focused public well being program serving marginalized communities, together with racial minorities and LGBTQ+ populations, was awarded $60 million over six years.
Chicago has drawn scrutiny for its initiatives targeted on range, fairness and inclusion.
The Biden-era Pink Line Extension and the Pink and Purple Modernization Applications, which collectively whole roughly $2.1 billion, have been paused in 2025 pending a overview of “race-based contracting” practices.
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CDC analysis could also be topic to potential cuts. (Nathan Posner/Anadolu Company by way of Getty Photographs / Getty Photographs)
Moreover, funding for CDC analysis on sexually transmitted illnesses affecting “adolescents and younger adults, homosexual, bisexual, and different males who’ve intercourse with males” could also be topic to potential cuts. The venture, which listed Chicago as a recipient, was in line to obtain $7 million, The Put up reported.
In October 2025, the Trump administration labeled federal funding for numerous local weather and renewable vitality initiatives as a “Inexperienced New Rip-off” and subsequently terminated or paused $7 billion in grants, with Colorado among the many primarily affected states, in line with native media CPR Information.
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The Trump administration might broaden grant cancellations sooner or later amid considerations about systemic failures in sanctuary metropolis management, which surfaced prominently following Minnesota’s fraud schemes.
The governors of California, Colorado, Illinois and Minnesota didn’t instantly reply to FOX Enterprise’ request for remark.
Fox Information Digital’s Greg Norman contributed to this report.
