The ongoing government shutdown has brought U.S. Army Corps of Engineers projects to a standstill, as the Trump administration weighs canceling over billion worth of projects.
$11 Billion Projects Halted Amid Shutdown
The Trump administration has been forced to pause and consider canceling over $11 billion in projects due to the government shutdown, as announced by Russell Vought, the director of the White House Office of Management and Budget, on X on Friday.
“The Democrat shutdown has drained the Army Corps of Engineers’ ability to manage billions of dollars in projects,” wrote Vought.
These funds have been redirected from "lower-priority projects" in cities including New York, San Francisco, Boston, and Baltimore.
Vought Targets Funding In Blue States
This announcement follows a series of events that have put Vought in the spotlight. Earlier in October, President Donald Trump scheduled a meeting with Vought to discuss cutting Democrat-run agencies, referring to it as an “unprecedented opportunity.”
Vought has targeted federal funding in Democratic-led areas during the ongoing government shutdown, freezing about $18 billion for New York City infrastructure, canceling $8 billion for climate projects across 16 states, and withholding $2.1 billion for Chicago infrastructure.
Critics Slam Trump, Vought Over Shutdown
However, this move has not been without criticism. Senate Minority Leader Chuck Schumer (D-N.Y.) accused Trump and Vought of using Americans as “pawns” in the government shutdown, which has led to thousands of federal layoffs.
Furthermore, Sen. Elizabeth Warren (D-Mass.) accused Vought of attempting to dismantle the nation’s consumer watchdog, the Consumer Financial Protection Bureau, during the government shutdown.
Shutdown’s Impact On Economy
The halt of these projects is a direct consequence of the shutdown, which could last for “five, six weeks,” according to Moody’s Chief Economist Mark Zandi. Zandi warns that the shutdown will continue until essential services fail. This could potentially lead to a significant delay in the completion of these projects, impacting the economy and the cities involved.
Meanwhile, Treasury Secretary Scott Bessent also stated that the ongoing government shutdown has started to impact the economy and people’s lives.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
