The White House has instructed the Department of Transportation and the Centers for Disease Control and Prevention to reduce roughly $1.5 billion in federal grant funding, according to officials familiar with the directive.
The order targets a range of environmental, transportation, and public-health grants that were previously approved for distribution to state and local governments. Administration officials said the funding reductions are part of a broader effort to reassess federal spending priorities and eliminate programs viewed as misaligned with current policy goals.
Much of the funding slated for cuts had been allocated to projects in states led by Democratic administrations. The affected grants supported initiatives related to climate programs, infrastructure planning, and public-health efforts, some of which were already in early stages of implementation.
Federal agencies have been directed to review existing awards, pause certain disbursements, and notify recipients of changes. Officials at DOT and CDC are now working through internal processes to determine which programs will be reduced or discontinued.
State and local leaders in affected areas have raised concerns about project delays and potential financial gaps caused by the cuts, while administration officials maintain the move is intended to redirect taxpayer funds toward what they describe as higher-priority national objectives.
The funding rollback is expected to continue in phases as federal departments complete their reviews and align spending with updated White House guidance.