Office of Management and Budget Director Russ Vought said Friday that the ongoing government shutdown is forcing the U.S. Army Corps of Engineers to halt billions of dollars in infrastructure projects.
Senate Minority Leader Chuck Schumer plans to headline an anti-Trump “No Kings” rally this weekend as Democrats hold firm on keeping the government shut down. In a post on X, Vought said the standoff has forced the Army Corps of Engineers to pause roughly $11 billion in funding for “lower-priority projects” in major Democratic cities.
“The Democrat shutdown has drained the Army Corps of Engineers’ ability to manage billions of dollars in projects,” Vought wrote. “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.”
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,…
— Russ Vought (@russvought) October 17, 2025
The announcement highlights the growing fallout from the third week of the federal funding lapse, which has already furloughed thousands of government workers and disrupted services nationwide. In a Wednesday appearance on “The Charlie Kirk Show,” Vought said the government may ultimately dismiss more than 10,000 federal employees as part of a broader effort to downsize Washington’s bureaucracy.
“We want to be very aggressive where we can be in shuttering the bureaucracy, not just the funding but the bureaucracy, [so] that we now have an opportunity to do that, and that’s where we’re going to be looking for our opportunities,” Vought said.
Hours later, however, a federal judge in San Francisco temporarily blocked the planned layoffs, warning of the “human cost” associated with the mass terminations. The ruling marked the first major judicial intervention in the administration’s effort to shrink the federal workforce amid the prolonged standoff with congressional Democrats.
When CNN’s Jake Tapper claimed on “The Lead” that the Trump administration was using the shutdown as a pretext to fire federal employees, House Speaker Mike Johnson pushed back, saying that furloughed workers are entitled to back pay once the government reopens.
“This is a very important distinction. Furloughed workers do get paid on the back end. They get that pay back to them. It’s reimbursed, as you know. That’s how it works. That’s the statute and the tradition and the practice,” Johnson said. “Russ Vought does want to reduce the size and scope of government, as does every common sense American, because the federal government is too big. It does too many things, and it does almost nothing well.”
(Featured Image Media Credit: Official White House Photo by Tia Dufour/Flickr)
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