The Trump administration has frozen $18 billion in funding for key transportation projects in New York, escalating a political battle as the government shutdown drags on. The move directly targets the home state of top Democrats, Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi, as Trump uses the shutdown to pressure opponents.
The partial shutdown, the 15th since 1981, has halted scientific research, environmental cleanup, and financial oversight, while forcing 750,000 federal employees into furloughs or unpaid work. Agencies such as the Department of Veterans Affairs have scaled back operations, limiting services at national cemeteries.
Trump has suggested the shutdown could extend his broader effort to shrink the federal workforce, though no immediate layoffs were announced. Instead, his administration has focused on withholding funds from Democratic strongholds. The White House mocked Schumer online after the New York funding freeze, prompting sharp criticism from Democrats who accused Trump of using Americans as bargaining chips.
In Congress, both Republican and Democratic proposals to temporarily reopen the government failed, leaving $1.7 trillion in federal agency operations unfunded. With Republicans holding only a slim Senate majority, bipartisan talks are underway to find a compromise.
Tensions grew as government websites broke neutrality rules by blaming Democrats for the shutdown, while Vice President JD Vance warned of air travel disruptions as aviation workers continue without pay. The standoff echoes the record 35-day shutdown in 2018–2019, which ended after major flight delays.
Both parties are pointing fingers ahead of the 2026 midterms. Democrats argue Trump is holding the government hostage, while Republicans accuse Democrats of partisan obstruction. Healthcare funding remains central to negotiations, as Democrats push to expand subsidies and prevent Trump from reversing them, while Republicans resist, framing the shutdown as leverage for their agenda.
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