U.S. President Donald Trump is taking advantage of the current budget dispute to punish his political opponents and paralyze strategic projects across several states. In the midst of the partial federal government shutdown, which has left much of the administrative apparatus blocked due to a lack of agreement, the White House decided to freeze $26 billion (€22.18 billion), directly affecting critical infrastructure and renewable energy programs.
Of that amount, about $18 billion is linked to transportation projects in New York State, including the construction of a railway tunnel between New York and New Jersey and the expansion of a subway line in Manhattan, according to Russell Vought, Director of the U.S. Office of Management and Budget. In addition, another $8 billion for renewable energy programs in 16 states has been suspended, including California, governed by Democrat Gavin Newsom, one of Trump’s fiercest political rivals.
The political consequences were immediate: New York is home to the two highest-ranking Democrats in Congress, Chuck Schumer and Hakeem Jeffries, reinforcing the perception that the measure is retaliatory. Leaders of both parties accused Trump of weaponizing federal funds, stressing that these projects are not political luxuries but vital infrastructure for the nation’s safety, mobility, and economy.
Democratic congresswoman Mikie Sherrill, candidate for governor of New Jersey, denounced on X that the suspension of funds for the Gateway Tunnel is “a direct punishment to working families in Jersey, from commuters to union members”, describing it as yet another attack by the MAGA movement against the people. The shutdown, the first in nearly six years, has placed more than 750,000 federal employees on forced leave, while soldiers and border agents continue working without pay.
The situation also has economic repercussions: the Federal Reserve must contend with delays in critical data used to set monetary policy, adding further uncertainty to the markets and increasing pressure on Congress.
