Trump Administration Orders $1.5 Billion Funding Clawback From Blue States

by | Feb 5, 2026

Office of Management and Budget (OMB) Director Russell Vought

President Trump’s budget office has ordered the Department of Transportation and the Centers for Disease Control and Prevention to claw back more than $1.5 billion in federal funds from several Democrat-led states, citing waste and mismanagement.


The Office of Management and Budget directed the DOT to cancel more than $943 million in grants and ordered the CDC to pull at least $602 million allocated to California, Colorado, Illinois, and Minnesota. An OMB spokesperson said the states were targeted for mishandling taxpayer dollars, and a DOT spokesman confirmed the transportation cuts are underway.

OMB officials said additional grant cancellations are expected. The move follows Trump’s earlier warning that federal funding could be halted for sanctuary states, which he said encourage fraud and crime.

 

 

Source: New York Post

 

 

 

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