Trump’s Grim Reaper Slashes Blue City Budgets—Again—in Latest Shutdown Power Grab
Russ Vought is once again making use of his handy scythe as the government shutdown heads into week four.
Photo Illustration by Victoria Sunday/The Daily Beast/Getty Images
President Donald Trump’s budget chief specifically targeted four deep blue cities for billions in potential funding cuts as the administration attempts to inflict pain—and blame—on Democrats for the government shutdown.
Director of Management and Budget (OMB) Russ Vought announced the latest projects he was planning to slash in a post on X on Friday.
“The Democrat shutdown has drained the Army Corps of Engineers’ ability to manage billions of dollars in projects,” Vought wrote.
“The Corps will be immediately pausing over $11 billion in lower-priority projects & considering them for cancellation, including projects in New York, San Francisco, Boston, and Baltimore. More information to come from the Army Corps of Engineers,” he added.
The project pause comes on Day 17 of the government shutdown, as lawmakers dig in over the temporary spending bill. The Senate left town Thursday, while the House has been out for nearly a month.
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“Because of the lapse in appropriations that provide for oversight of Army Corps projects, we believe that our office and the Corps may be unable to provide adequate oversight of all the projects currently in the portfolio, which includes projects essential to life and safety,” the Office of the Assistant Secretary of the Army for Civil Works told Daily Beast.
It said it would pause and review some projects to enable continued oversight of the most critical projects.
“Once the lapse and review are over, the Administration may consider taking further actions allowable under the law that limit, cancel, or reprioritize resources in a manner that is consistent with these reviews and with the Administration’s stated priorities,” the office added.
OMB Director Russ Vought said that the administration would be pausing $11 billion in Army Corps of Engineers projects and looking to cancel them altogether in New York, San Francisco, Boston, and Baltimore.
Nathan Posner/Getty Images
It is the latest in a series of cuts Vought has announced, blatantly targeting blue states across the country.
The administration has fired some 4,000 federal workers so far according to court filings. Vought, who Trump posted a video of as the grim reaper, said this week in an interview that they are looking to lay off more than 10,000 people.
A federal judge on Wednesday temporarily blocked the government from following through with layoffs during the shutdown after unions representing federal workers sued.
On Friday, it was revealed that the federal courts were running out of money and would be forced to limit operations going forward due to the shutdown. It is expected to delay court proceedings across the country.
The latest round of money being paused is not the first to target New York. On Day 1 of the shutdown on Oct. 1, Vought announced he was cutting $18 billion in New York infrastructure projects.
He also announced the Trump administration was slashing $8 billion for clean energy projects in 16 blue states.
However, some Republican lawmakers sounded the alarm on the funding cuts after learning the projects set to hit their states included money going to GOP districts.
The OMB director continued his attempts to punish Democrats on Friday when he specifically called out deep blue New York, San Francisco, Boston and Baltimore.
The Democrat shutdown has drained the Army Corps of Engineers' ability to manage billions of dollars in projects. The Corps will be immediately pausing over $11 billion in lower-priority projects & considering them for cancellation, including projects in New York, San Francisco,…
— Russ Vought (@russvought) October 17, 2025
Trump has repeatedly said that his team would be cutting “Democrat programs,” but has not gone into details.
Both Republicans and Democrats remain dug in over the shutdown as GOP leaders continue to demand Congress pass the Republican short-term spending bill. It failed a 10th time in the Senate this week, before lawmakers skipped town.
Democrats have refused to cave and give Republicans the necessary 60 votes needed to pass the bill in the Senate. They remain united in their push for any spending deal to address the Affordable Care Act subsidies, which are set to expire and send insurance premiums skyrocketing at the end of the year.
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