Impacts of Government Shutdown on Infrastructure Projects

Russ Vought, the Director of the White House Office of Management and Budget, indicated on Friday that the ongoing government shutdown, led by Democrats, could lead to a delay or cancellation of $11 billion in infrastructure projects across various Democratic cities, including Boston, Baltimore, New York, and San Francisco.

He pointed out in a post on X that the shutdown has significantly affected the Army Corps of Engineers’ ability to manage billion-dollar projects. As a result, the agency is considering pausing and potentially canceling low-priority projects worth more than $11 billion, with further details expected from the Army Corps of Engineers.

This statement adds to the growing list of projects that have faced delays or possible cancellations because of the shutdown caused by the expiration of expanded Obamacare subsidies.

Earlier in October, Vought had announced that an $18 billion infrastructure initiative in New York City would also be put on hold due to the implications of the shutdown. He specifically mentioned that funding for certain projects, such as the Hudson Tunnel and the Second Avenue subway, would be halted to avoid compliance with what he referred to as unconstitutional DEI principles.

Furthermore, Vought noted that despite the shutdown, the Office of Management and Budget plans to ensure that military personnel will continue to receive their pay. He mentioned on X, “We’ll pay the military, we’ll pay law enforcement, and we’re continuing with reductions in force.” It appears that the Trump administration has implemented RIFs, which permanently cuts positions rather than issuing temporary furloughs.

Initial figures suggest that around 4,600 RIFs have been carried out across various departments. However, a federal judge in San Francisco has temporarily halted these RIFs, declaring that using the shutdown as a means to facilitate them is “unlawful, beyond its authority, arbitrary and capricious.”