The Office of Management and Budget has ordered federal agencies to review funding and compile detailed data on federal dollars distributed to 14 Democratic-led states, according to an internal OMB memo. The directive requires agencies to account for grants, loans, contracts, and other federal awards sent to these jurisdictions.

The states identified in the memo include California, Colorado, Connecticut, Delaware, Illinois, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia.

OMB officials said the review is intended to strengthen oversight and accountability across federal programs. The memo states that the data collection effort is designed to “facilitate efforts to reduce the improper and fraudulent use of those funds through administrative means or legislative proposals to Congress.”

The directive comes amid heightened scrutiny of federal spending following high-profile fraud cases in Minnesota involving welfare programs, as well as ongoing concerns among conservatives about sanctuary policies and financial mismanagement in several blue states.

OMB officials emphasized that the review does not include any immediate withholding of funds, describing the effort as a proactive step to safeguard taxpayer resources and ensure federal dollars are being used as intended.

The targeted states account for a significant share of federal aid recipients, largely due to their population size, urban centers, and extensive social programs.

The findings from the review are expected to inform future budget decisions and potential policy reforms under the Trump administration as it continues to prioritize efforts to root out waste and fraud in federal spending.