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Trump targets Democratic areas with Chicago transit funding freeze

The U.S. administration of President Donald Trump froze $2.1 Billion in Chicago transit funding Friday, starving yet another Democratic city as the government shutdown enters its third day.

Budget director Russ Vought stated that the money, which was earmarked to build elevated train lines, has been placed on hold in order to prevent it from "flowing through race-based contracts."

Trump has escalated his campaign to use extraordinary powers of the U.S. Government to punish political opponents. Later in the day, The White House announced that it would identify funds that could be held back from Portland, Oregon. Portland is a left-leaning town that hosted high-profile protests under Trump's first tenure.

Trump has threatened to dismiss more federal employees, in addition to the 300,000 that he will be letting go this year. A White House source, speaking under condition of anonymity, said dozens of agencies had submitted plans to reduce their workforce.

The Republican President has used Chicago, the third largest city in the United States, as a punching bag for his rhetoric and has even threatened to send National Guard troops.

Illinois Governor JB Pratt, a prominent Trump critic who is seen as a potential Democratic presidential candidate in 2028, said that the funding freeze was tantamount to hostage taking.

He said that the move was a political stunt, but it actually hurts our economy and hardworking people who depend on public transportation.

The Illinois funding freeze comes after moves made on Wednesday to stop transit projects in New York - home of the two top Democrats in Congress - and green energy projects in Democratic states such as California and Colorado.

Kathy Hochul, Democratic Governor of New York, said that the Trump Administration reversed its decision to reduce $187 million from security funds in New York.

SWIFT SOLUTION WITHOUT SIGN

The Washington shutdown impasse showed no sign of a resolution. On Friday, the U.S. Senate will vote on two competing plans to end this shutdown. However, neither plan is likely to pass. The shutdown will become the longest in U.S. History if it continues through Saturday.

Democrats and Republicans blamed each other over the last few days for failing to fund the government beyond October 1, which is the beginning of the fiscal year. They did not seem to make any progress toward a deal to allow money to flow once again.

The standoff between Congress and the agencies has frozen approximately $1.7 trillion of funds, which is roughly one quarter of all federal spending. The remainder is devoted to retirement and health programs, as well as interest payments on the $37.5 trillion growing debt.

Democrats insist that any funding package should also extend the pandemic-era health care subsidies, which are due to expire by the end of December. Republicans disagree and say this issue should be addressed separately. According to a Kaiser Family Foundation survey, nearly 8 out of 10 Americans are in favor of keeping these subsidies in place.

House of Representatives speaker Mike Johnson, a Republican from the House, said that he was not concerned by Trump's campaign of pressure, which undermines Congress' constitutional power over spending issues.

He told reporters that "President Trump wants the government to be open as much as we do." "Is President Trump trying to put pressure on that to happen?" He's probably doing it, yes. "I applaud you for that."

Services Interrupted

The 15th shutdown since 1981 has affected scientific research, financial regulations, and many other activities. The pay of approximately 2 million federal employees has been suspended, but troops, airport security screens, and other "essential workers" are still required to report to work.

Wall Street was left guessing Friday about the state of the largest economy in the world, as the government failed to release its monthly report on unemployment.

A prolonged shutdown would disrupt air travel for millions of Americans and could also cause federal courts to shut down. If the standoff continues, federal workers will miss their first pay in mid-October.

The longest shutdown was 35 days, which occurred in 2018-2019 during Trump's first year in office.

The Senate has already rejected three Republican plans, one of which funded the government until November 21. Another Democratic plan would have also supported expiring health subsidies. Both plans will be voted on again by the chamber on Friday.

Republicans control both chambers, but need at least 7 Democratic votes in the Senate to pass spending legislation.

Senators from both sides have said they are exploring a possible compromise. Some Democrats, however, say that they don't trust Republicans to adhere to any agreement which would first reopen government and then address the healthcare subsidies. These subsidies were approved as part of the Democratic COVID relief package in 2021 and help 24,000,000 Americans pay for insurance.

(source: Reuters)