Office of Management and Budget (OMB) Director Russell Vought on Friday announced that the Trump administration is pausing around $11 billion worth of “lower-priority projects” in several major cities across the country due to the federal government shutdown.
“The Democrat shutdown has drained the Army Corps of Engineers’ ability to manage billions of dollars in projects,” Vought wrote as explanation for why the projects were halted and could ultimately face cancellation.
However, he did not provide any explanation or details as to which projects the administration will pause and what criteria it used to select the projects—or will use to determine if they should be fully canceled.
Newsweek reached out to the U.S. Army Corps of Engineers and OMB via email on Friday evening for comment. The White House referred to the agency for any inquiry on the matter.
Why It Matters
The U.S. Army Corps of Engineers was established over 200 years ago as a separate, permanent branch in 1802. The group’s mission has evolved over the centuries to meet the changing defense needs of the U.S.
The group also provides services to bolster rescue and construction efforts across the United States. The Corps website highlights the group’s involvement in response to flooding and hurricane disasters in Georgia, North Carolina, Tennessee and Florida, as well as rebuilding efforts in the aftermath of the devastating Los Angeles wildfires this year.
The Corps calls itself “the Nation’s environmental engineer,” which owns and operates more than 600 dams and 12,000 miles of commercial inland navigation channels. It also maintains harbors, preserves and restores wetlands and supports Army and Air Force installations.
What To Know
Vought has said the administration will cut back on Army Corps of Engineers infrastructure projects in major Democratic-run cities, including New York, San Francisco, Boston and Baltimore.
“The Corps will be immediately pausing over $11 billion in lower-priority projects & considering them for cancellation,” Vought wrote, adding that further information would come from the Corps.
Vought did not specify the number or nature of the projects considered for the pause, and the Army Corps of Engineers has provided no updates after Vought’s announcement. The most recent posts on the Corps’ X account include a repost of a Department of Defense post on Thursday concerning additional construction of the Border Wall in Arizona and a repost on October 2 announcing the impact of the shutdown on broader Corps operations.
“The most recent appropriations for the Department of War expired at 11:59 p.m. EST on September 30, 2025,” the post by the U.S. Army on October 2 read. “Military personnel will continue in a normal duty status without pay until such time as a continuing resolution or appropriations are passed by Congress and signed into law. Civilian personnel not engaged in excepted activities will be placed in a non-work, non-pay status.”
The administration of President Donald Trump has pursued further cuts during the shutdown, with Vought indicating on Friday that they may hit more widely than previously believed.
Trump at the beginning of the shutdown announced on Truth Social that he and Vought would look at making extensive workforce reductions, saying that he would seek Vought’s recommendations on which “Democrat Agencies” to reduce and thanking “the Radical Left Democrats” for giving him an “unprecedented opportunity.”
The reduction impacts around 4,000 federal workers across several agencies, including the departments of Treasury, Health and Human Services, Education and Housing and Urban Development.
What’s the Latest on the Government Shutdown?
The standoff between Senate Republicans and Democrats has lasted for more than two weeks, with tensions and frustrations rising the longer the shutdown continues. Democrats have refused to approve any bill until the Republicans agree to extend health care subsidies to protect against rising premiums, set to go into effect at the end of the month.
The Republicans control both the House of Representatives and Senate, and the House managed to pass a continuing resolution (CR), which provides holdover funding until a proper spending bill can be agreed upon.
But the Senate requires 60 votes to overcome a filibuster and pass the same bill, and few Democrats broke ranks to back the CR. Instead, a series of “mini bills” have been considered, like providing payment for military personnel and services for veterans.
Republican Senate Majority Leader John Thune on Thursday offered to guarantee a vote on the health care tax credits, but only once the government has reopened and debate on the issue can occur. The Democrats, however, ultimately dismissed Thune’s offer and want a “guaranteed outcome.”
What Services and Projects Have Been Affected by the Government Shutdown?
The shutdown has already started to affect everyday Americans, with several states this week warning that Supplemental Nutrition Assistance Program (SNAP) benefits, which help low- and no-income households afford groceries, may not be available in November.
Military families faced the prospect of missing out on pay as a result of the shutdown, with GOP House Speaker Mike Johnson initially saying he would look to guarantee pay for military personnel before appearing to backtrack so Senate Republicans could try to force Democrats to break ranks—but Trump this week guaranteed that those payments would go out.
The cuts occur as the Trump administration has announced that it would pay $20 billion to bail out struggling soy farmers in Argentina, and this week indicated that the bailout could increase to $40 billion.
What People Are Saying
Democratic U.S. Representative Kweisi Mfume of Maryland, on X: “This newly announced pause of preapproved funding for the Army Corps of Engineers projects in blue cities – including Baltimore – is another example of the Trump Administration placing partisan politics over the welfare of the American people.”
Vought, on X: “The Democrat shutdown has drained the Army Corps of Engineers’ ability to manage billions of dollars in projects. The Corps will be immediately pausing over $11 billion in lower-priority projects & considering them for cancellation, including projects in New York, San Francisco, Boston and Baltimore. More information to come from the Army Corps of Engineers.”
Trump, earlier this month on Truth Social: “I have a meeting today with Russ Vought, he of PROJECT 2025 Fame, to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut, and whether or not those cuts will be temporary or permanent. I can’t believe the Radical Left Democrats gave me this unprecedented opportunity. They are not stupid people, so maybe this is their way of wanting to, quietly and quickly, MAKE AMERICA GREAT AGAIN! President DJT”
