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Trump Administration Halts Approximately $38 Billion in Aid to New York and Other Democratic States
  • NNP=Hong Seong-Gu
  • October 3, 2025 at 11:43 AM
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The Trump administration, amid a government shutdown, has suspended a $18 billion transportation project in New York City and canceled an $8 billion clean energy project, targeting states predominantly led by Democrats.


Russell Vought, Director of the Office of Management and Budget, announced on Wednesday via X (formerly Twitter), "Nearly $8 billion in Green New Scam funding to fuel the left's climate agenda is canceled."


He released a list of states where the affected projects are located: California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington. 

The Department of Energy announced on Wednesday that it had terminated 321 financial awards supporting 223 projects, resulting in savings of approximately $7.56 billion in taxpayer dollars.


The department explained, "Through a thorough and individualized financial review, the Department determined that these projects do not adequately meet the nation's energy needs, are not economically viable, and do not present a positive return on investment for taxpayer dollars."


It added, "Recipients may appeal the termination decision within 30 days. Some projects included in this announcement have already begun the appeals process."


California Governor Gavin Newsom stated that the Trump administration canceled "up to $1.2 billion" allocated for a major hydrogen energy project, threatening tens of thousands of jobs, according to French news agency AFP.


Newsom pledged, "In Trump's America, energy policy is decided by the highest bidder, ignoring economics and common sense. Regardless of what Washington D.C. dictates, we will continue to pursue our clean energy strategy."


Vought announced on X (formerly Twitter) on Wednesday, "Nearly $18 billion in New York City infrastructure projects are on hold to stop the flow of funds based on unconstitutional DEI principles. More details will be forthcoming from the U.S. Department of Transportation."


He later added, "Specifically the Gateway Tunnel project and the Second Avenue Subway."


The Department of Transportation stated on Wednesday that "awarding grants to projects with contract requirements based on race and gender is unconstitutional, violates civil rights laws, and is a waste of taxpayer resources."


According to the department, funding will remain on hold "pending a prompt administrative review."


The Department of Transportation added, "However, due to the shutdown by Chuck Schumer and Hakeem Jeffries, the U.S. Department of Transportation will take a considerable amount of time to review New York's unconstitutional practices, forcing the civil rights staff tasked with this review into furloughs."


Senate Majority Leader Chuck Schumer (D-NY) posted on X on Wednesday, stating that halting these projects "is foolish and counterproductive because these projects create tens of thousands of good jobs and are essential for a strong regional and national economy."


According to AFP, New York Governor Kathy Hochul (D) called the suspension of funding for "critical infrastructure projects" "political retaliation and an attack on New York."


Governor Hochul said, "Donald Trump clearly intends to harm the American people by weaponizing his reckless government shutdown."


According to Politico, President Trump said on Tuesday, ahead of the government shutdown, "We can get rid of a lot of things we don't want, and those are Democrat things."


Russell Vought served as Deputy Director and Director of the Office of Management and Budget under the Trump administration. Following Trump's defeat in the 2020 presidential election due to alleged voter fraud, Vought founded the Center for Renewing America (CRA), a think tank that counters Critical Race Theory (CRT). He later played a significant role in developing Project 2025 at The Heritage Foundation, which includes a proposal to reclassify tens of thousands of federal civil servants as political appointees, replacing them with Trump loyalists.


By Sung Ku Hong, Chief Reporter, NNP USA / Special Contributor to this publication NNP info@newsandpost.com


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