The Trump administration has targeted billions of dollars worth of federal funding allotted for blue state projects less than 24 hours after government funding lapsed, ratcheting up the pressure in a shutdown fight with Democrats on Capitol Hill.

White House budget director Russell Vought announced Wednesday that nearly $8 billion in energy funding in 16 Democratic-led states, including California and New York, was being cancelled, though he did not specify which programs would be affected.

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He also announced that $18 billion worth of New York City infrastructure projects is being put on hold to “ensure funding is not flowing based on unconstitutional DEI principles.”

“Specifically, the Hudson Tunnel Project and the Second Ave Subway,” Vought said.

Democrats quickly decried the moves with House Minority Leader Hakeem Jeffries (D-NY) and Senate Minority Leader Chuck Schumer (D-NY) accusing President Donald Trump of using “working people as collateral damage.”

“The Gateway Tunnel and Second Avenue Subway aren’t political trophies — they are lifelines,” the pair said in a joint statement. “They mean tens of thousands of good-paying union jobs. They mean shorter commutes, safer travel, and a stronger economy not just for New York, but for the entire nation. Choking off these projects out of spite will damage America’s competitiveness and cost working families dearly.”

The Department of Transportation informed New York on Wednesday that the projects were under “administrative review” to “determine whether any unconstitutional practices are occurring.”

However, the Transportation Department said the review is now delayed due to the shutdown.

“Thanks to the Chuck Schumer and Hakeem [Jeffries] shutdown … USDOT’s review of New York’s unconstitutional practices will take more time,” the department said in a statement. “Without a budget, the Department has been forced to furlough the civil rights staff responsible for conducting this review.”

It continued, “This is another unfortunate casualty of radical Democrats’ reckless decision to hold the federal government hostage to give illegal immigrants benefits.”

The move to withhold funding from energy and infrastructure projects comes after Trump threatened Tuesday to implement “irreversible” cuts in the event that a shutdown occurred.

“Now, with that being said, we can do things during the shutdown that are irreversible, that are bad for them and irreversible by them, like cutting vast numbers of people out, cutting things that they like, cutting programs that they like,” Trump told reporters in the Oval Office.

Speaking at Wednesday’s White House press briefing, Vice President JD Vance likened the New York funding decisions to “triage” to ensure that “the most critical and most essential services are provided” throughout a shutdown.

“The government does a lot of things. Of course, Republicans think that the federal government probably does too much, but there are a lot of critical things the federal government does that absolutely all of us would agree need to do,” he explained. “We’re going to do everything that we can over the coming weeks, if the shutdown lasts that long, to ensure that people get the essential services that they need, despite the fact that Chuck Schumer has shut down the federal government.”

Vance actively denied that the administration is specifically targeting blue states or federal workers at federal agencies and programs traditionally supported by Democrats, as it seeks to keep essential services operational.

“We’re not targeting federal agencies based on politics. We’re targeting the people’s government so that as much as possible of the essential services can continue to function,” the vice president said.

When asked if he felt targeted by the cuts, Jeffries told reporters that the Trump administration was targeting “thousands of jobs of hardworking Americans, working-class Americans, and blue-collar Americans who are going to lose the ability to work at the Second Avenue subway site or at the other project that has been cancelled related to the Cross Harbor tunnel.”

VOUGHT CUTS $18 BILLION IN NEW YORK INFRASTRUCTURE FUNDING OVER DEI CONCERNS

Wednesday’s decision isn’t the first time Trump has clashed with New York Democrats over the Gateway Tunnel. 

During his first term in office, Trump repeatedly pushed Congress to slash funding for the project, which brought him into direct conflict with then-Gov. Andrew Cuomo (D-NY).

In 2018, fresh off a partial government shutdown, Trump pressured former Speaker Paul Ryan (R-WI) to remove funding for the Gateway Tunnel program entirely. That spending bill contained nearly $3 billion in discretionary grants, a portion of which Democrats argued could be awarded for Gateway construction.

Former President Joe Biden approved legislation formally funding the program in 2021.