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Trump Administration Cut Or Froze $177 Billion In Grants Across US States, Analysis Shows

Trump Administration Cut Or Froze $177 Billion In Grants Across US States, Analysis Shows

Yekkirala Akshitha
September 17, 2026

The Donald Trump administration has cut, frozen or delayed up to $177 billion in federal grants since the president began his second term, according to a new tracking analysis released on Wednesday. The disruptions have affected all 50 states and Washington DC, with health, nutrition, environmental programmes and disaster relief among the areas seeing the largest impact.

The figure comes from Lost Funds, a newly launched public database created by the States United Democracy Center and Grant Witness, a group of researchers, scientists and attorneys tracking changes to federal funding under Trump. The organisations say the $177 billion represents nearly 10 per cent of federal discretionary spending. The figure is an analysis by the two organisations, rather than a figure released by the US government.

The tracker identifies thousands of grants that have been eliminated, frozen or delayed. Examples include maternal health funding in Michigan, education research funding in Mississippi and assistance for minority farmers in Iowa. California, Texas, New York, Illinois and North Carolina recorded the largest amounts of interrupted grant funding, according to the analysis.

The issue is already playing out in court. A federal judge recently ruled that the administration's plan to cut the Federal Emergency Management Agency's workforce by 50 per cent was unlawful. The ruling came after a challenge by FEMA workers' unions, with the judge finding that the Department of Homeland Security had overstepped its authority.

Federal emergency funding has also triggered legal challenges from states. California and a coalition of states have challenged conditions attached to billions of dollars in disaster preparedness grants, while Pennsylvania has separately sued over conditions attached to Homeland Security Grant Program funding.

The dispute extends to federally funded medical research. Pennsylvania Senators Dave McCormick, a Republican, and John Fetterman, a Democrat, are seeking answers from Health and Human Services Secretary Robert F Kennedy Jr over the cancellation of health research grants. More than 150 Agency for Healthcare Research and Quality grantees were notified in July that funding for ongoing multi year projects would be cancelled. The senators have requested a briefing by September 25 on the criteria used and whether affected institutions can seek reconsideration.

Meanwhile, the administration has proposed changing the rules governing more than $1 trillion in annual federal funding. The proposal would give political appointees a greater role in grant decisions and make scientific peer review advisory, according to an analysis by the Center for American Progress.

The Lost Funds database uses information from USASpending.gov, the federal government's open spending database. Its organisers said the tracker will be updated as the administration takes further action and courts issue new rulings.

The administration has also continued approving some federal disaster funding. FEMA announced nearly $1 million in assistance for projects in Pennsylvania and Virginia on September 15, showing that federal grant programmes have not simply stopped but are being altered, reviewed or interrupted in different areas.

Trump Administration Cut Or Froze $177 Billion In Grants Across US States, Analysis Shows - The Morning Voice