Trump Administration Plans Funding Cuts to Blue States Over Alleged Mismanagement

Wed Feb 11 2026 12:12:23 GMT+0200 (Eastern European Standard Time)

The Trump administration is considering withholding over $1.5 billion in federal public health and transportation funding from Democratic-led states, citing concerns over fraud and mismanagement. This move targets California, Colorado, Illinois, and Minnesota, prompting legal challenges from affected states.

The Trump administration's recent attempts to cut federal funding are focused on a group of Democratic-led states, with allegations of fraud and mismanagement. The planned cuts, totaling more than $1.5 billion, would impact public health and transportation projects, particularly in California, Colorado, Illinois, and Minnesota. Affected governors are speaking out against the decision, claiming it is politically motivated. Similar funding cuts have faced legal challenges previously, indicating potential for further court interventions.

President Donald Trump’s administration is planning to withhold some public health and transportation funds from a group of Democratic-led states.

Full details have not been released, including whether the states could take any steps to avoid losing the funding. The federal government cited concerns over fraud and mismanagement of taxpayer dollars, but has not presented evidence beyond remarks from Trump and others in his administration.

The approach has become a familiar one for the administration, this time focusing on California, Colorado, Illinois, and Minnesota.

Recently, an Office of Management and Budget official confirmed to The Associated Press that the office is advising the U.S. Department of Transportation and the U.S. Centers for Disease Control and Prevention to cancel grants exceeding $1.5 billion, initially reported by the New York Post. The official spoke anonymously due to authorization constraints.

Some targeted programs appear aligned with the administration's policies that oppose protections for LGBTQ+ communities and diversity initiatives. Projects affecting electric vehicle charger funding, translations for commercial driver's licenses in Spanish, and climate adaptation funding in California are included.

The health research grants, among those affected, aim to address health disparities in specific demographics. Examples include studies on youth and minority populations in Chicago and support for reducing social isolation among older LGBTQ+ individuals.

As of now, governors from the targeted states report they have not been formally notified about the impending cuts. Spokeswoman Jillian Kaehler from Gov. JB Pritzker’s office emphasized the administration has repeatedly attempted to politicize funding decisions, advocating that Illinois will continue to demand the resources owed to them.

Similar funding cuts from the Trump administration targeting blue states have been stopped by courts before. Recently, a judge prohibited the government from restricting child care subsidies in certain states, and challenges are underway concerning SNAP administrative funding cuts.