The Trump administration has ordered a broad review of federal funding flowing to more than a dozen Democrat-led states, CNN reported Thursday.
The directive is outlined in a budget data request sent Tuesday to nearly all federal departments and agencies, excluding the Departments of War and Veterans Affairs. The memo, issued by the Office of Management and Budget and reviewed by CNN, seeks detailed spending information to help identify potential waste, fraud, and abuse.
The OMB memo emphasized that the review does not involve withholding federal funds and is described as a data-gathering exercise designed to "facilitate efforts to reduce the improper and fraudulent use of those funds."
The review builds on policies first triggered during last year's government shutdown and has intensified amid major fraud revelations, particularly in Minnesota.
OMB Director Russell Vought has overseen the initiative after spending the past year reshaping the agency's tools to exert greater oversight of federal spending.
The memo directed agencies to compile data on grants, loans, contracts, subcontracts and other monetary awards provided to 13 states and Washington, D.C.
All of the states voted for Democratic nominee Kamala Harris in the 2024 election, and 12 have Democrat governors. A 14th Democrat-led state has since been added, CNN said.
The request extends beyond state governments, requiring agencies to include funding sent to local governments, colleges, and universities and nonprofit organizations operating within those states.
RealClearPolitics first reported the administration's funding review.
According to CNN, the effort is part of a broader initiative to produce a comprehensive accounting of federal spending in those states, giving the administration options to address what it views as waste, abuse, or misaligned priorities.
That includes funding tied to policies opposed by the administration, such as "sanctuary city" practices.
The review also comes as federal officials focus on the Minnesota welfare fraud scandal and as the Justice Department works to establish a new national fraud enforcement division.
Agencies have until Monday to submit funding data for California, Colorado, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Washington, D.C., and Virginia.
The request covers fiscal years 2025 and 2026, as well as projected spending for 2027, CNN reported.
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