White House Office of Management and Budget (OMB) Director Russ Vought announced Friday that over $11 billion in federal infrastructure and engineering projects will be paused—potentially canceled—in Democrat-run cities due to the ongoing government shutdown. Cities affected include 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,” Vought wrote on X. “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.”
Vought previously announced in early October that approximately $18 billion in infrastructure efforts in New York City—such as the Hudson Tunnel Project and the Second Avenue Subway—were also on hold. He cited concerns over funding being tied to what he called “unconstitutional DEI principles.”
The Trump administration has held Democrats responsible for the shutdown, which was triggered over a dispute involving the expiration of enhanced Obamacare subsidies. Vought described the White House strategy as ensuring essential services remain funded while eliminating politically driven programs.
“OMB is making every preparation to batten down the hatches and ride out the Democrats’ intransigence. Pay the troops, pay law enforcement, continue the RIFs, and wait,” the OMB said.
The administration has also implemented widespread federal job cuts known as RIFs (Reductions in Force). These differ from furloughs in that positions are permanently eliminated. Reports indicate around 4,600 RIFs have already been executed across federal agencies. The total number could exceed 10,000.
However, a federal judge in San Francisco temporarily blocked further RIFs, ruling that using the shutdown to justify mass firings is likely “illegal” and “arbitrary and capricious.”
The Army Corps of Engineers is expected to provide more details on which projects may be scrapped in the coming days.
