President Donald Trump threatened mass layoffs if spending cuts are not implemented|Gage Skidmore|CC BY-SA 4.0

President Donald Trump threatened mass federal layoffs if spending cuts are not implemented, raising tensions on the first day of the government shutdown.

He posted about the plan on social media just before meeting with White House budget chief Russ Vought.

Right after the meeting, the Department of Energy announced it is canceling $7.56 billion in funding for 223 projects it says don’t meet the country’s energy needs or economic standards. 

Vought has said he is cancelling nearly $8 billion in what he called “Green New Scam” funding.

Energy Secretary Chris Wright said the decision followed a “thorough, individualized review” and aligns with President Trump’s promise to protect taxpayer dollars and boost affordable, reliable energy.

Funding recipients have 30 days to appeal. The cancellations affect six DOE offices, including Clean Energy Demonstrations, Energy Efficiency and Renewable Energy, and Fossil Energy.

Democrats called the move political, noting it targets projects in states that voted for former vice president Kamala Harris. 

Critics warn the cuts could raise utility costs nationwide and slow clean energy development just as electricity demand is set to rise.