President Donald Trump has directed the withholding of at least $28 billion in infrastructure funds initially designated for states such as New York, California, and Illinois. At the same time, his administration has begun issuing layoff notices to more than 4,200 federal employees across multiple agencies. The moves come amid a protracted government shutdown and escalating tensions between Republicans and Democrats
In a court filing, the Justice Department disclosed that over 1,400 employees at the Treasury Department and at least 1,100 workers at the Department of Health and Human Services (HHS) had received layoff notices. Other affected agencies include Commerce, Education, and Homeland Security’s cybersecurity division.
These two actions. The freezing of state infrastructure allocations and scaling back the federal workforce, intensifies the standoff between the White House and Democrats over government funding. The administration frames the cuts as necessary pressure tactics. Democrats and federal unions counter that they are politically motivated and potentially illegal.
According to public filings and reporting by news agencies, more than 4,200 federal employees have been issued layoff notices as the administration moves from furloughs to permanent cuts.
White House Budget Director Russell Vought confirmed the shift in tone, posting on social media, “The RIFs have begun,” using the term “Reduction in Force” to distinguish these cuts from traditional furloughs.
Agencies say many targets are employees already furloughed or not currently working, though details remain limited. HHS says about 41 percent of its workforce has been furloughed already.
At the same time, the largest federal employee unions have filed lawsuits claiming the layoffs violate rules prohibiting such cuts during a shutdown. The White House argues in court filings that unions lack standing to challenge federal personnel decisions.
A federal judge is slated to hear arguments on October 15 over whether the layoffs can proceed. Some Republicans have also expressed unease. Senator Susan Collins, chair of the Senate Appropriations Committee, defended federal employees’ work and stressed the importance of maintaining essential public services.
The freeze of $28 billion in infrastructure funding affects states with large Democratic voting blocs and vocal critics of the administration, notably New York, California, and Illinois. Blaming Democrats for the these actions, President Trump says there are responses to legislative intransigence.
Africa Digital News, New York