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office of management and budget
'Blatantly Illegal': Trump Admin Orders Review of Federal Funds to Democratic-Led States
"This is a blatant and dangerous abuse of power," said a Democratic senator representing one of the targeted states. "Trump does not care how many people he hurts to score cheap political points."
Jan 23, 2026
The Trump White House has reportedly ordered federal agencies to conduct a sweeping review of funding to more than a dozen states carried by former Vice President Kamala Harris in the 2024 election, a move that lawmakers from the targeted states condemned as unlawful political retaliation.
The review, first reported by RealClearPolitics, was outlined in a data request that the White House Office of Management and Budget (OMB) sent out on Tuesday. Every federal department and agency was included in the request except for the Department of Defense and the Department of Veterans Affairs.
California, Colorado, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington state, and Washington, DC are the jurisdictions targeted by the OMB.
The OMB memo, according to the Washington Post, "requests agencies provide detailed information on all funds to those states, including money routed for state and local governments, nonprofit organizations, and higher education institutions." OMB claims it is trying to root out fraud.
"This is authoritarianism, plain and simple," said Sen. Bernie Sanders (I-Vt.), whose state is the only one on the list with a Republican governor.
"The Trump administration is targeting states that didn’t vote for him—including my home state of Vermont," Sanders added. "Using federal power to punish political opponents is anti-democratic and blatantly illegal."
US Sen. Jeff Merkley (D-Ore.) similarly condemned the funding investigation as "more political retribution from Trump, the authoritarian strongman, and his crony Russ Vought," the head of OMB.
"This is a blatant and dangerous abuse of power," Merkley wrote on social media. "Trump does not care how many people he hurts to score cheap political points."
The OMB data request is just the latest instance of the Trump administration specifically targeting federal funds to Democratic-led states.
The White House budget office previously tried to cut off clean energy funds to Democratic-run states before being blocked in court. Earlier this month, the Trump administration froze $10 billion in childcare and social services funding for low-income families in five Democratic-led states, claiming fraud.
Sharon Parrott, president of the Center on Budget and Policy Priorities, said the administration's new funding investigation "follows a clear pattern" and marks "a harmful and shameful escalation of the administration's corrupt politicization of basic governance."
"Withholding federal funding can have grave consequences," said Parrott. "Just take the five-state freeze on childcare. In just those states, those funds are used to provide care to nearly 340,000 children. Without funding, childcare providers close, kids don’t get care, and parents can’t go to work."
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‘What Is the Administration Trying to Hide?’ Dems Demand Public Testimony From Trump Budget Chief
"He has unlawfully blocked funding and created a massive affordability crisis across the country. Congress and the American people deserve answers."
Dec 02, 2025
A group of House Democrats on Tuesday called on President Donald Trump's budget chief, Russell Vought, to publicly testify on the administration's unlawful withholding of funds approved by Congress and broader economic agenda, which the lawmakers said is "driving up costs, weakening the labor market, and inflicting real economic harm on the American people."
"We remain alarmed that you persist in implementing an extreme agenda that jeopardizes the economic security of the American people and shows open disregard for Congress' constitutional power of the purse," House Budget Committee Democrats, led by Rep. Brendan Boyle (D-Pa.), wrote in a letter to Vought, the director of the Office of Management and Budget (OMB) and a lead architect of the far-right Project 2025 agenda.
The lawmakers accused Vought of dodging the House Budget Committee, noting that the head of OMB typically appears before the panel shortly after the release of the president's annual budget request. Trump unveiled his budget blueprint all the way back in May.
"Not only has the committee yet to hear from OMB, you have also found time for multiple closed-door meetings with House Republicans," the Democrats wrote. "Under Democratic chairs, the public was never shut out from these important exchanges. What is the administration trying to hide?"
The letter points to Government Accountability Office (GAO) reports finding that the Trump administration has repeatedly violated federal law by withholding or delaying the disbursement of funds authorized by Congress, including National Institutes of Health research grants and money for Head Start.
The House Democrats also condemned Vought's attacks on government transparency, citing his agency's decision earlier this year to cut off public access to a database that tracks federal spending. OMB later partially restored the database after losing a court fight.
"If you fail to appear before this committee before the end of the year, this will be the only administration in the last 50 years to not send the OMB director—a basic standard you yourself met during President Trump’s first administration (appearing in both 2019 and 2020)," the lawmakers wrote on Tuesday. "If you disagree... it will make one point unmistakably clear: you know you cannot defend an extreme agenda."
We’re demanding that Russ Vought, Trump’s OMB Director and the architect of Project 2025, testify before the House Budget Committee.
He has unlawfully blocked funding and created a massive affordability crisis across the country. Congress and the American people deserve answers. pic.twitter.com/kxde5mCYs9
— Rep. Pramila Jayapal (@RepJayapal) December 2, 2025
After playing a key role in crafting the notorious Project 2025 agenda ahead of Trump's 2024 election win, Vought has emerged as one of the most powerful figures in the administration, wielding power at OMB so aggressively that ProPublica recently dubbed him "the shadow president."
"What Vought has done in the nine months since Trump took office goes much further than slashing foreign aid," the investigative outlet noted. "Relying on an expansive theory of presidential power and a willingness to test the rule of law, he has frozen vast sums of federal spending, terminated tens of thousands of federal workers and, in a few cases, brought entire agencies to a standstill."
One anonymous administration official told ProPublica that "it feels like we work for Russ Vought."
"He has centralized decision-making power to an extent that he is the commander-in-chief," the official said.
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Think Tank Launches 'One-Stop Shop' for Economic Info to Fight Trump's War on Data
"We’re collecting all data we can to assess the economy’s health in this time when the gold standard data are under attack,” said the Economic Policy Institute's senior economist.
Nov 18, 2025
Amid President Donald Trump's efforts to conceal the harmful consequences of his economic policies by hiding key data and replacing economists who tell harsh truths with partisan yes-people, a leading US think tank on Monday announced a new digital dashboard "to provide an accountability check" against attempts to manipulate and mislead the public.
The Economic Policy Institute (EPI) says its new data accountability dashboard "serves as a one-stop shop" for economic data as federal statistic agencies (FSAs), once the "gold standard" for information, "face historically unprecedented threats from the Trump administration to their capacity and even their independence."
"This raises the specter of a future where FSA data cannot be relied upon to honestly report whether the US economy is experiencing dysfunction," EPI said.
In a bid to circumvent this, the EPI dashboard "displays a range of data not collected or disseminated by FSAs to shed some light on the economy during the pause in government data collection during the shutdown and—even more importantly—to provide an accountability check against efforts to manipulate FSA data in the future."
The federal statistical agencies (FSAs) that produce the gold standard economic data employers/investors/job seekers/workers/policymakers rely on to assess the health of the U.S. economy face unprecedented threats.We've pulled next-best data from non-FSA sources to help keep an eye on things. 1/
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— Economic Policy Institute (@epi.org) November 18, 2025 at 7:19 AM
As EPI senior economist Elise Gould explained in a statement: “The data collected by the federal statistical agencies are an incredibly valuable public good. While there would never be a good time to squander it, the absolute worst time to degrade data quality is when the economy is facing policy shocks that threaten to cause either a recession or an uptick of inflation."
"Given this urgency, we’re collecting all data we can to assess the economy’s health in this time when the gold standard data are under attack,” she added.
Trump's attempts to hide unfavorable economic data date back to his first administration, when he blocked or delayed economic analyses on the projected impacts of his tariffs. For example, half a dozen economists at the US Department of Agriculture (USDA) quit en masse in April 2019, claiming they suffered retaliation for publishing reports that shed negative light on the president's trade and taxation policies.
In a related move that year, the USDA abruptly relocated its Economic Research Service main office from Washington, DC to Kansas City, Missouri, prompting another wave of resignations. ERS publications—including reports on farm income, rural economies, and trade impacts—dropped sharply, with key analyses delayed or blocked. Critics, including former agency officials, argued that the move to Kansas City was intended to conceal negative impacts of Trump's trade policies from the public.
During Trump's second administration, Commerce Secretary Howard Lutnick disbanded the Federal Economic Statistics Advisory Committee (FESAC), a key body that worked under the Commerce Department’s Bureau of Economic Analysis to ensure that the federal government produces accurate data on economic indicators.
Trump also gutted the Bureau of Labor Statistics’ Technical Advisory Committee, which had advised the Department of Labor about how economic changes can impact data collection. In August, Trump fired BLS Commissioner Erika McEntarfer, baselessly accusing her of manipulating economic data to harm him politically by publishing a jobs report showing weak employment growth.
Two weeks later, the president nominated EJ Antoni, a senior economist at the Heritage Foundation described as a "partisan bomb thrower" who helped write Project 2025, a blueprint for a far-right overhaul of the federal government, to replace McEntarfer. Antoni stunned critics with suggestions including eliminating federal monthly jobs reports, and with his overall lack of data management experience. His nomination was later withdrawn amid mounting controversy.
Additionally, the Trump administration has summarily fired dozens of independent agency leaders, required every federal agency to have a White House liaison, and required ostensibly independent agencies to submit draft regulations to the Office of Management and Budget—headed by Project 2025 architect Russell Vought—for review before publication.
As Common Dreams reported, an analysis published in September by the Center on Budget and Policy Priorities detailed how the Trump administration's politicization of data, combined with funding cuts, is making it more difficult for experts to determine how the president's policies are impacting US households.
From ending tracking of the impacts of climate-driven extreme weather, to removing a study from the Department of Justice website that showed violent attacks by far-right extremists outpaced those committed by the left, to removing questions about gender identity from key crime surveys, the Trump administration's attacks on information transcend economic data.
"The assault on data, research, and facts is fundamental to Trump and his authoritarian regime," Liza Featherstone, a contributing editor at The New Republic, recently wrote. "He seems to understand that data provides the basis for arguments, and he does not want any arguments. He also understands that facts and knowledge can only be nourished and sustained by institutions and experts, so he is destroying those institutions and pink-slipping those experts."
"We must appreciate their importance and their stakes as well as he does, and remain as committed to the institutions, the data, the facts, and the experts as Trump is to their eradication," Featherstone added. "He has brought sincere zeal to their destruction, and we must bring an even greater passion to their restoration and renaissance. We will need it, as ours is the harder job."
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