The Trump administration has frozen US$26 billion in funds for Democratic-leaning states as a follow-through on its threats to use the government shutdown to target Democratic priorities.
Targeted programs include $18 billion for transit projects in New York, home to two of Congress’s top democrats and $8 billion for green-energy in 16 Democratic states, including California and Illinois.
These moves have made it clear that President Donald Trump would follow through on threats to use the shutdown to punish his political opponents and extend his control over the $7 trillion federal budget.
During a White House briefing, Vice President JD Vance said the administration would also be forced to resort to layoffs if the shutdown lasts more than a few days. This would add to the 300,000 who will be pushed out by December and make this the first shutdown to result in permanent layoffs.
Vance has denied that layoffs have anything to do with political affiliation, while at the same time blaming democrats for the shutdown.
“The Chuck Schumer-AOC wing of the Democratic party shut down the government because they said to us, we will open the government only if you give billions of dollars of funding to healthcare for illegal aliens,” he said.
Schumer and House Minority Leader Hakeem Jeffries were meant to meet with Trump before the shutdown to discuss an extension for the Affordable Care Act’s tax credits, which would reduce the cost of health insurance purchased on the Obamacare exchanges.
Trump later cancelled the meeting, and Republicans showed little willingness to agree to the demand.
Following the shutdown, Republicans and Democrats remain at a crossroads regarding the funding.
"I want to see that a deal is a deal, and I would like to see the Republicans make a commitment to work with us on health care," said Senator Tim Kaine, a Virginia Democrat who represents many federal workers near the nation's capital.
"But I've never said that has to be all I's dotted and T's crossed because that could be complicated."
Schumer has slammed the Trump administration for removing funding from democratic states, likening it to blackmail.
"He is using the American people as pawns, threatening pain on the country as blackmail," Schumer said.
