Home USA Trump’s $28 billion funding freeze for Democratic states raises constitutional red flags

Trump’s $28 billion funding freeze for Democratic states raises constitutional red flags

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Shutdown disrupts federal services with 2 million workers unpaid as Senate rejects funding plan

The U.S. government shutdown entered its third day on Friday as efforts to end the impasse failed in the Senate. The Republican plan to restore government funding was rejected in a 54-44 vote, falling short of the 60 votes required. This failure prolongs the ongoing funding freeze, which now affects roughly one-quarter of annual federal spending, totaling about $1.7 trillion.

Shutdown Standoff Persists After Senate Vote Fails

President Donald Trump has intensified pressure on Democrats to agree to his plan. The administration’s campaign involves freezing funds for Democratic-led cities and states, with Chicago now the latest target. Budget Director Russ Vought said the Trump administration withheld $2.1 billion in Chicago transit funding, earmarked for elevated train lines, to ensure it did not “flow via race-based contracting.”

The Trump administration has already frozen at least $28 billion in funding for Democratic cities and states. Trump has repeatedly criticized Chicago, the nation’s third-largest city, and has also threatened to send in National Guard troops.

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Illinois Governor JB Pritzker, a Democrat, called the funding freeze “hostage-taking,” saying it harms the economy and the people who depend on public transit. The White House is reportedly also reviewing funding for Portland, Oregon, a city known for its left-leaning politics and protests during Trump’s first term.

Political Tensions Escalate Amid Funding Cuts

The administration’s funding freeze comes as Trump threatens broader federal workforce reductions, beyond the 300,000 positions already slated for elimination this year. Dozens of agencies have submitted workforce reduction plans. Some Republicans have voiced support for Trump’s pressure campaign, despite the potential constitutional concerns over Congress’ authority to manage spending.

House Speaker Mike Johnson, a Republican, acknowledged that Trump is applying pressure but praised the effort. Other Republicans, such as Senator Thom Tillis, warned that such tactics create a “bad-faith environment” that complicates negotiations.

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The funding freezes have mostly targeted projects championed by Democrats, including public transit and green-energy programs. Counterterrorism funding for Democratic states was also temporarily blocked, though $187 million for New York was restored on Friday after court intervention.

The deadlock in Congress has prevented both Republican and Democratic funding proposals from advancing. Democrats argue that any funding deal should also address the expiration of pandemic-era healthcare subsidies, which help 24 million Americans pay for coverage. Nearly 80 percent of Americans support keeping these subsidies in place, according to a Kaiser Family Foundation poll. Republicans insist that healthcare funding should be negotiated separately.

Government Services Disrupted During Shutdown

The shutdown, the 15th since 1981, has already disrupted a wide range of government operations. Scientific research, financial regulation, and other federal activities have been suspended. Roughly 2 million federal workers are not receiving pay, though essential workers such as troops and airport security personnel continue to work without interruption.

Economic reporting has also been affected. The government did not release its monthly unemployment report on Friday, leaving financial markets uncertain about the state of the economy. If the shutdown continues into mid-October, federal workers will miss their first paycheck, which could have widespread economic impacts.

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Air travel, food aid programs, and federal courts are also at risk of disruption if the standoff persists. The longest government shutdown in U.S. history lasted 35 days during Trump’s first term, from 2018 to 2019. Republicans currently control both the House and Senate, but Senate leaders need at least seven Democratic senators to vote in favor to pass any spending legislation.

As of Friday, the stalemate shows no immediate sign of resolution, with both sides maintaining firm positions. The funding freeze on Chicago and other Democratic cities adds pressure to the political standoff, highlighting the high-stakes nature of the ongoing government shutdown.

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Ruta Deshpande
Ruta Deshpande is a seasoned Defense Technology Analyst with a strong focus on cutting-edge military innovations and strategic defense systems. With a deep-rooted interest in geopolitics and international relations, she brings nuanced insights into the intersection of technology, diplomacy, and global security. Ruta has reported extensively on defense modernization, space militarization, and evolving Indo-Pacific dynamics. As a journalist, she has contributed sharp, well-researched pieces to Deftechtimes, a reputed defense and strategy publication. Her analytical writing reflects a strong grasp of global military doctrines and regional conflict zones. Ruta has a particular interest in the Arctic race, cyber warfare capabilities, and unmanned combat systems. She is known for breaking down complex defense narratives into accessible, compelling stories. Her background includes collaborations with think tanks and participation in strategic dialogue forums.