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Trump Sets Meeting With OMB Director to Weigh Agency Cuts During Shutdown

OMB has already frozen billions for New York transit plus clean‑energy awards, signaling a Project 2025‑inspired downsizing push.

Overview

  • President Trump said he will meet today with OMB Director Russell Vought to decide which federal agencies he wants to cut and whether cuts would be temporary or permanent.
  • Vought has halted roughly $18 billion for New York infrastructure, including the Hudson Tunnel and Second Avenue Subway, and the Energy Department says it terminated about $8 billion in clean‑energy awards across 16 states.
  • White House officials signaled layoffs of federal workers are imminent if the shutdown continues, and an OMB memo instructed agencies to prepare reduction‑in‑force plans.
  • Unions have sued OMB over layoff threats, New York officials are preparing legal challenges to the funding freezes, and legal experts say a shutdown does not grant authority to abolish agencies or make permanent firings.
  • The shutdown stems from a Senate clash over extending Affordable Care Act premium subsidies, as the administration warns of economic damage and presses Democrats to accept its funding plan.