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U.S. Shutdown Day Two: Trump Moves to Cancel Renewable Grants, Signals Mass Federal Layoffs

Officials opened a 30-day appeal window for 321 canceled awards targeting 16 Democratic-led states.

Overview

  • Congress failed to pass a stopgap funding bill, triggering a partial shutdown that furloughed about 750,000 federal workers as essential staff continue without pay.
  • The Energy Department said it will cut 321 grants tied to 223 renewable-energy projects, describing $7.56 billion in savings because the projects do not meet national needs or offer a positive return.
  • Targets are confined to Democratic-governed states such as California and New York, with OMB Director Russell Vought labeling the funding a "Green-New-Scam" on social media.
  • President Trump said he will consult with Vought on cuts to "Democrat agencies" and the White House signaled thousands of federal positions could be eliminated, with decisions potentially temporary or permanent.
  • Aviation safety concerns surfaced as the controllers' union reported more than 2,300 members furloughed and over 13,000 working without pay, while some outlets report broader freezes up to $26 billion that include New York transport projects, figures that differ from the Energy Department's estimate.