The Trump administration is preparing to cut portions of federal health and transportation funding to several states governed by Democrats, widening a pattern of financial disputes between Washington and state leaders.
Specifics of the proposed cuts remain unclear, including whether affected states would have options to retain the funds. Federal officials have pointed to alleged fraud and misuse of taxpayer money, though no documented evidence has been released beyond statements from Trump and senior administration figures.
The latest move again zeroes in on California, Colorado, Illinois and Minnesota, states that have frequently clashed with the administration. Courts have previously stepped in to pause similar attempts to block federal dollars from reaching certain states.
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According to an Office of Management and Budget official who spoke to The Associated Press on condition of anonymity, the agency has instructed both the U.S. Department of Transportation and the U.S. Centers for Disease Control and Prevention to terminate grants exceeding $1.5 billion. The New York Post first reported on the planned cancellations.
The official shared a limited breakdown of affected programs, some of which appear to conflict with administration policies opposing protections for transgender individuals and diversity, equity and inclusion initiatives.
Transportation programs under review include funding for electric vehicle charging infrastructure across all four states, resources supporting efforts to translate Illinois commercial driver’s license testing into Spanish, and financial support for California climate adaptation projects.
Health-related research grants are also on the chopping block. One project focuses on studying health disparities among Chicago residents disproportionately impacted by sexually transmitted infections, specifically “adolescents, racial and ethnic minorities, and men who have sex with men;” while another grant supports California university research on ”reducing social isolation among older LGBTQ adults.”
Also included is a $7.2 million grant awarded to the Chicago-based American Medical Association. The listing referenced the organization’s backing of gender-affirming care for minors, which conflicts with a Trump executive order.
Officials representing the governors of the four states said Tuesday that they had not received formal notice from the federal government regarding the funding plans.
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“Time and time again, the Trump Administration has attempted to politicize and punish certain states President Trump does not like,” Jillian Kaehler, a spokesperson for Illinois Gov. JB Pritzker, said in a statement. “It’s wrong and often illegal, so Illinois will always fight for the resources and services our taxpayers are owed.”
The targeted states, all led by Democratic governors, have already challenged other funding restrictions imposed by the administration.
Last week, a federal judge temporarily blocked efforts to halt child care assistance and additional social service funding designed for low-income residents across those four states and New York. State officials argued that the threatened programs deliver more than $10 billion annually to those jurisdictions.
Another legal dispute is unfolding over the administration’s push to withhold administrative funding tied to the Supplemental Nutrition Assistance Program, commonly known as SNAP, from 22 states. The dispute centers on states that have declined to provide detailed recipient data, including immigration status. Most of the states involved are governed by Democrats. A judge is currently weighing whether withholding those funds would violate an earlier court order that prohibits the federal government from collecting the information for now.
Separately, Trump has warned that federal dollars could be pulled from sanctuary cities and their corresponding states. Federal agencies were also ordered to gather data on 14 jurisdictions, largely under Democratic control, along with Washington, D.C. The four states affected by the latest funding threat appeared on that list as well.
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Minnesota and the city of Minneapolis have additionally faced scrutiny over other federal funding streams in recent months.


