Trump Administration Targets Funding for Democratic States Over Policy Disputes

Thu Feb 12 2026 01:07:25 GMT+0200 (Eastern European Standard Time)

The Trump administration is set to withhold over $1.5 billion in transportation and health funding from Democratic-led states including California, Colorado, Illinois, and Minnesota, amid claims of mismanagement and fraud.

President Donald Trump's administration plans to withhold public health and transportation funds from several Democratic states due to alleged mismanagement and non-compliance with federal policies. The targeted states, including California, Colorado, Illinois, and Minnesota, face cuts exceeding $1.5 billion without prior communication from the administration. Legal challenges against similar funding restrictions have already been raised in courts. The governors of these states have expressed their intent to fight for these essential resources.

President Donald Trump’s administration is planning to withhold some public health and transportation funds from a group of Democratic-led states, specifically California, Colorado, Illinois, and Minnesota. This action, amounting to over $1.5 billion, comes amid concerns over alleged fraud and mismanagement of taxpayer dollars, although specifics have not been disclosed.

A representative from the Office of Management and Budget mentioned that they have directed the Department of Transportation and the Centers for Disease Control and Prevention to cancel various grants. Many of these programs have been under scrutiny for not aligning with the administration's policy stances, particularly regarding issues of diversity and protections for transgender individuals.

States targeted include California, where funding aimed at combating climate change, research on driver's license translations for the Spanish-speaking community, and investments in electric vehicle infrastructure are under threat. Notably, a grant for the American Medical Association to support gender-affirming care is also on the chopping block.

Despite these announced cuts, communications from the Trump administration have not yet reached the governors’ offices of the affected states. Illinois Governor JB Pritzker condemned the actions as politicizing federal resources, stating that California, Colorado, Illinois, and Minnesota will resist these cuts vehemently.

This isn’t the first time the Trump administration has targeted states led by Democrats. Previous attempts to cut funds for social services and child care subsidies have faced legal challenges, with many courts temporarily blocking such actions. A judge recently ruled against the administration's bid to restrict funding meant for lower-income groups in these states.

If the funding cuts proceed, it could significantly hinder various health initiatives, including research focused on vulnerable populations in Chicago, among others. As the landscape continues to develop, the affected states are preparing to contest these cuts in the legal arena.