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The Trump administration’s price range workplace advised FOX Enterprise Wednesday that it’s canceling $1.5 billion in blue-state grants, citing issues about how funds are being managed in California, Colorado, Illinois and Minnesota.
The Workplace of Administration and Price range (OMB) stated it should goal initiatives on the Division of Transportation (DOT) and the Facilities for Illness Management and Prevention (CDC), chopping $943 million and $602 million, respectively.
An OMB spokesperson advised the New York Submit that the states had been being focused resulting from “waste and mismanagement” of taxpayer funds.
The announcement follows OMB launching a sweeping evaluate of federal funding for a number of Democratic-led states in January, which required states to submit detailed receipts proving no funds had 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 preserve sanctuary insurance policies or initiatives the administration deems wasteful.
Issues cited embody tax help 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 might be affected by the funding cuts, together with equity-focused infrastructure initiatives and public well being initiatives the OMB beforehand criticized as “social engineering” moderately 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 stated in 2025.
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The Trump administration’s price range workplace is canceling $1.5 billion in funding for DOT and CDC initiatives in 4 blue states over funding misuse issues. (Al Drago/Bloomberg by way of Getty Photos / Getty Photos)
In January, Trump halted greater than $10 billion in federal childcare and social providers funding to 4 states, in addition to New York, over issues that some advantages had been fraudulently funneled to noncitizens, the Submit reported.
In California, San Francisco was slated to obtain $15 million to increase its electrical automobile charging community, with a concentrate on “deprived communities which are marginalized by underinvestment and overburdened by air pollution,” metropolis officers stated in 2025.
Equally, the California Decreasing Disparities Venture, 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 range, fairness and inclusion.
The Biden-era Crimson Line Extension and the Crimson and Purple Modernization Applications, which collectively complete roughly $2.1 billion, had been paused in 2025 pending a evaluate 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 illnesses affecting “adolescents and younger adults, homosexual, bisexual, and different males who’ve intercourse with males” could also be topic to potential cuts. The venture, 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 numerous local weather and renewable power 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 response to native media CPR Information.
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The Trump administration could increase grant cancellations sooner or later amid issues 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.
