Democrats are accusing President Donald Trump of engaging in political retribution for ordering a sweeping review of federal funding flowing to more than a dozen Democratic-led states and the District of Columbia just weeks after threatening to freeze billions over sanctuary policies and alleged fraud.
A memo from the Office of Management and Budget, obtained by the Washington Examiner, indicates the agency is requesting budget data from the district and the following states: California, Colorado, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington.
Every state except Vermont is led by a Democrat, with two states, Virginia and New Jersey, having recently inaugurated new governors. The review is meant to be “a data-gathering exercise only” and will “not involve withholding funds, and therefore does not violate any court order,” according to the memo.
Democrats disagree, however. They say the review is “a naked act of political retribution” against critics of Trump and OMB Director Russell Vought, who has led the administration’s efforts to slash the federal budget and workforce.
“This is a classic tactic used by Donald Trump and Russell Vought to intimidate and bully people he thinks are his enemies,” said Senate Minority Leader Chuck Schumer (D-NY). “People are tired of his antics. Coercion is not going to work and it’s going to backfire big time for Republicans.”
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According to the directive, all federal agencies, excluding the Department of War and the Department of Veterans Affairs, are required to undergo the funding review. They are required to send their response back to the OMB by Wednesday, Jan. 28.
“This information will be used to better understand the scope of funding in certain States and localities in order to facilitate efforts to reduce the improper and fraudulent use of those funds through administrative means or legislative proposals to Congress,” the OMB memo states.
Agencies were told to include funding data for the states as well as localities, institutions of higher education, and nonprofit organizations located, operating, or performing award activities within those states.
Virginia was reportedly not included in the list of states undergoing the review, but was later added following the inauguration of Gov. Abigail Spanberger (D-VA). Virginia and every other state included in the review voted for then-Vice President Kamala Harris in the 2024 election.
The move by OMB is reminiscent of Elon Musk and the Department of Government Efficiency’s efforts to trim the federal budget through aggressive tactics.
Sen. Patty Murray (D-WA), the top Democrat on the Appropriations Committee, blasted the review as “another tired re-run of Russ Vought’s corrupt playbook” on X.
“No one should be intimidated. Vought and Trump can kick rocks. This will not stand,” she added.
The Trump administration has ramped up a crackdown on fraud from Democratic states following the revelation of a Minnesota fraud scandal involving Somali immigrants accused of defrauding multiple government social services programs of at least $1 billion. Trump has repeatedly slammed Gov. Tim Walz (D-MN) and Somali-American Rep. Ilhan Omar (D-MN) over the scandal.
Vice President JD Vance visited the state on Thursday, where he implored local leaders to work with Immigration and Customs Enforcement to stop the violent clashes between law enforcement and protesters.
Trump has repeatedly threatened to cut federal funding to Democratic states on Feb. 1 over their support for sanctuary cities. The administration also cut $10 billion in funds for child care and social services in five states — California, New York, Illinois, Colorado, and Minnesota. But a federal judge in New York temporarily blocked the administration from freezing the funding earlier this month.
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Democrats have continued to challenge Trump’s efforts to slash funding in court, but the OMB review marks an escalation of the White House’s attacks against the minority party, Democrats bemoaned.
“This is a blatant and dangerous abuse of power. Trump does not care how many people he hurts to score cheap political points,” wrote Sen. Jeff Merkley (D-OR).
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