Trump Orders Funding Review for 14 Democratic-Led States

The Donald Trump administration has launched a comprehensive review of federal funding provided to 14 mostly Democratic-controlled states and the District of Columbia. Through a January 20 memo, the Office of Management and Budget directed nearly all federal agencies to compile detailed reports on grants, loans, contracts, and other monetary awards allocated to these jurisdictions between fiscal years 2025 and 2026. The deadline for these submissions was set for January 28.

While the budget office described the initiative as a "data-gathering exercise only" intended to reduce fraudulent and improper use of funds, the move coincides with a harder line on immigration. Trump announced at a White House news conference that the federal government will stop payments to sanctuary cities and states that refuse to collaborate with Immigration and Customs Enforcement starting February 1, 2026.

The data request excludes the Department of Veterans Affairs and the Department of Defense, which the administration now refers to as the Department of War. The administration's focus on these specific jurisdictions follows a previous attempt to freeze more than $10 billion in funding for states including California, New York, and Minnesota, an action that was blocked by a federal judge.