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Trump Leans Into Project 2025, Uses Shutdown to Freeze Blue-State Funds and Threaten Federal Layoffs

The White House is testing the limits of executive control over spending by pairing provocative AI posts with targeted funding pauses.

Overview

  • President Trump shared an AI-generated video casting OMB Director Russ Vought as the grim reaper after saying he would consult him on cutting what he called “Democrat Agencies.”
  • Vought has put $18 billion for New York transit on hold, frozen $2.1 billion for Chicago rail projects, and moved to cancel roughly $8 billion in energy grants across Democratic-led states.
  • Press secretary Karoline Leavitt said the president “likes to have a little fun” as the administration identifies where layoffs and agency cuts would occur, while Republican leaders called the decisions difficult.
  • Democrats and ethics groups contend the funding freezes and partisan messaging overstep appropriations law and could violate the Hatch Act, with legal challenges expected.
  • Talks to reopen the government remain stalled, and Speaker Mike Johnson has pushed back House votes until at least Oct. 14 as the partial shutdown continues.