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The Trump administration’s finances workplace instructed FOX Enterprise Wednesday that it’s canceling $1.5 billion in blue-state grants, citing considerations about how funds are being managed in California, Colorado, Illinois and Minnesota.
The Workplace of Administration and Price range (OMB) mentioned it would goal initiatives on the Division of Transportation (DOT) and the Facilities for Illness Management and Prevention (CDC), reducing $943 million and $602 million, respectively.
An OMB spokesperson instructed the New York Submit that the states have been being focused resulting from “waste and mismanagement” of taxpayer funds.
The announcement follows OMB launching a sweeping assessment of federal funding for a number of Democratic-led states in January, which required states to submit detailed receipts proving no funds have been being mishandled, CBS Information reported.
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The Workplace of Administration and Price range is planning to cancel over $1 billion in grants from the Division of Transportation (DOT) and the Facilities for Illness Management and Prevention (CDC). (Stephen Goin / Fox Information)
The initiative displays a shift in fiscal coverage towards “America First” priorities by withholding funds from states that keep sanctuary insurance policies or initiatives the administration deems wasteful.
Considerations cited embody tax assist for unlawful immigrants, inexperienced initiatives and alleged fraud in sure states, such because the $250 million COVID-era rip-off in Minnesota uncovered within the “Feeding Our Future” case.
A number of DOT and CDC packages in blue states could possibly be affected by the funding cuts, together with equity-focused infrastructure initiatives and public well being initiatives the OMB beforehand criticized as “social engineering” quite than professional public well being efforts.
“Using Federal assets to advance Marxist fairness, transgenderism, and Inexperienced New Deal social engineering insurance policies is a waste of taxpayer {dollars} that doesn’t enhance the day-to-day lives of these we serve,” the OMB beforehand mentioned in 2025.
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The Trump administration’s finances workplace is canceling $1.5 billion in funding for DOT and CDC initiatives in 4 blue states over funding misuse considerations. (Al Drago/Bloomberg by way of Getty Photos / Getty Photos)
In January, Trump halted greater than $10 billion in federal childcare and social companies funding to 4 states, in addition to New York, over considerations that some advantages had been fraudulently funneled to noncitizens, the Submit reported.
In California, San Francisco was slated to obtain $15 million to develop its electrical automobile charging community, with a concentrate on “deprived communities which are marginalized by underinvestment and overburdened by air pollution,” metropolis officers mentioned in 2025.
Equally, the California Decreasing Disparities Mission, an equity-focused public well being program serving marginalized communities, together with racial minorities and LGBTQ+ populations, was awarded $60 million over six years.
Chicago has drawn scrutiny for its initiatives centered on variety, fairness and inclusion.
The Biden-era Purple Line Extension and the Purple and Purple Modernization Packages, which collectively complete roughly $2.1 billion, have been paused in 2025 pending a assessment of “race-based contracting” practices.
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CDC analysis could also be topic to potential cuts. (Nathan Posner/Anadolu Company by way of Getty Photos / Getty Photos)
Moreover, funding for CDC analysis on sexually transmitted ailments affecting “adolescents and younger adults, homosexual, bisexual, and different males who’ve intercourse with males” could also be topic to potential cuts. The mission, which listed Chicago as a recipient, was in line to obtain $7 million, The Submit reported.
In October 2025, the Trump administration labeled federal funding for varied local weather and renewable vitality initiatives as a “Inexperienced New Rip-off” and subsequently terminated or paused $7 billion in grants, with Colorado among the many primarily affected states, in line with native media CPR Information.
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The Trump administration could develop grant cancellations sooner or later amid considerations about systemic failures in sanctuary metropolis management, which surfaced prominently following Minnesota’s fraud schemes.
The governors of California, Colorado, Illinois and Minnesota didn’t instantly reply to FOX Enterprise’ request for remark.
Fox Information Digital’s Greg Norman contributed to this report.
