The ongoing government shutdown, now entering its third week, is hitting major infrastructure projects across the U.S., with the Office of Management and Budget (OMB) Director Russ Vought announcing a dramatic halt to $11 billion in Army Corps of Engineers funding.
Vought claims the “Democrat shutdown” has forced the U.S. Army Corps of Engineers to pause and consider for cancellation these “lower-priority projects,” primarily impacting major Democratic-led cities.
In a post on X, Vought specifically called out projects in New York, San Francisco, Boston, and Baltimore as being on the chopping block. “The Democrat shutdown has drained the Army Corps of Engineers’ ability to manage billions of dollars in projects,” Vought wrote. “The Corps will be immediately pausing over $11 billion in lower-priority projects & considering them for cancellation…”
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The announcement comes as Senate Minority Leader Chuck Schumer is slated to headline a high-profile “No Kings” anti-Trump rally today, highlighting the political deadlock that has caused the funding lapse and furloughed thousands of federal workers.
Democrats are holding firm against the administration’s demands, fueling the prolonged standoff.
Layoffs Blocked Amid Broader Bureaucracy Fight
The infrastructure freeze is just one piece of the growing fallout. OMB Director Vought has also been vocal about using the shutdown as an opportunity to downsize the federal workforce, stating the government may ultimately dismiss more than 10,000 federal employees as part of an effort to shrink Washington’s bureaucracy.
However, a federal judge in San Francisco temporarily blocked the planned mass terminations, warning against the “human cost” of the layoffs and marking the first significant judicial intervention in the administration’s downsizing push.
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Meanwhile, House Speaker Mike Johnson pushed back on claims that the administration is using the shutdown as a pretext for firings. He emphasized that furloughed workers are entitled to back pay once the government reopens, a distinction he said is “very important.”
Johnson echoed Vought’s broader sentiment, stating, “Russ Vought does want to reduce the size and scope of government, as does every common-sense American, because the federal government is too big.”
As the shutdown drags on, the fight is shifting from funding to the very structure and size of the federal government, with crucial infrastructure projects caught in the middle. The Army Corps of Engineers is expected to provide more details soon on which specific projects will be halted or potentially canceled.
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