"We will not fund states that allow anarchy," she told reporters.
The federal government remains closed amid a bitter impasse on Capitol Hill over competing congressional spending bills.
President Donald Trump and Republicans have cast blame for the shutdown on Democrats' health care demands, while Democrats insist Republicans need to negotiate.
The Trump administration has threatened mass layoffs of some federal workers during the shutdown.
During Trump's speech to top-ranking generals and admirals, he pivoted his conversation several times to discuss the alleged violence in inner cities, saying firemen and police officers have "people shooting at them."
Trump comments come after he directed troops to Portland, Oregon, because of what he alleged were threats from domestic terrorists, and has threatened to send them to others.
While speaking to top-ranking generals and admirals in Quantico, Virginia, Trump said he is "very proud of our military" and addressed the Department of Defense's name change to the Department of War.
"If you don't like what I'm saying, you can leave the room," Trump said.
He said Democrats, who he called "bad people," have "given up" on their backlash to the name change.
Toward the end of his speech to top-ranking generals and admirals, Secretary of Defense Pete Hegseth said those listening should "take this guidance and run with it."
"If the words I'm speaking today are making your heart sink, you should resign," Hegseth said on Tuesday.
He added that the department's job is to "ensure our military is led by the very best, ready to answer the nation's call."
Secretary of Defense Pete Hegseth told top-ranking generals and admirals that the department is returning to basic training for those in the military -- what he calls "common sense, maximum lethality and authority for war fighters."
"It's very simple, but incredibly powerful," Hegseth said.
He said this training was "what I've ever wanted" when he was in the military.
