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Trump administration directs rescission of $1.5B from blue states on health, transportation

The Office of Management and Budget canceled $1.5 billion in grants to four Democratic-led states over alleged misuse and waste, including $943 million for DOT and $602 million for CDC projects.

  • The Trump administration's budget office is canceling over $1.5 billion in grants to blue states, citing concerns over waste and mismanagement of taxpayer funds according to the Office of Management and Budget .
  • The cuts include over $943 million from the Department of Transportation and $602 million from the Centers for Disease Control and Prevention, targeting states like New York and California.
  • Governors from affected states, like Kathy Hochul of New York, criticized the action as politicizing federal funding for essential services, emphasizing their intention to fight the cuts in court.
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The Office of Administration and Budget of the White House (OMB) announced $1.5 billion cuts in federal health and transportation grants for Democratic states. According to an OMB spokesman to The New York Post, these states were wasting and mismanaged taxpayers' funds.Read more

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New York Post broke the news in New York, United States on Wednesday, February 4, 2026.
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