Topline
The Trump administration is using the government shutdown to target Democratic-led states and priorities, while preserving some of its own key issues, as the Office of Management and Budget warns layoffs could begin within a matter of days.
Office of Management and Budget Director Russell Vought said Wednesday the agency was canceling $8 billion in Biden-era energy projects “to fuel the Left’s climate agenda” in states won by Kamala Harris in the 2024 presidential election, including Colorado, California, New Jersey and New York, though it’s unclear what projects specifically will be affected.
Vought also warned in a call with House Republicans on Wednesday other infrastructure projects in New York, home to Congress’ top Democratic leaders, are under review and said the government could begin permanent layoffs due to the shutdown in a matter of days, Politico reported, citing four anonymous sources.
The administration also halted $18 billion in funding for two major New York City infrastructure projects—the Hudson Tunnel and Second Avenue Subway—to “ensure funding is not flowing based on unconstitutional DEI principles,” Vought said, with the Department of Transportation warning a review of the funding could take longer due to the shutdown.
Meanwhile, the Trump administration has preserved some of its key priorities during the shutdown, including construction of a White House ballroom, an unnamed administration official told ABC News, claiming the project is not funded by congressional appropriations, while offices that handle tariffs and immigration enforcement will retain more staffing than in previous shutdowns, according to Politico analysis of internal government documents.
Vice President JD Vance rejected the notion the Trump administration was purposely maneuvering funding to punish Democrats, telling reporters during a White House briefing Wednesday “we’re not targeting federal agencies based on politics.” Though House Speaker Mike Johnson, R-La., contradicting Vance, said Wednesday during a press conference “the longer this goes on, the more pain will be inflicted” and told radio host Moon Griffon the shutdown could “benefit” Republicans by allowing them to make additional cuts to the federal workforce.
The Senate on Tuesday failed to approve Republican-backed legislation known as a “continuing resolution” that would stave off a shutdown by allowing the government to operate under its existing budget through Nov. 21. The Republican-backed measure was rejected in a 55-45 vote, which fell short of the 60-vote threshold needed to pass the Senate, with three members of the Democratic caucus voting alongside Republicans, marking the second time in a matter of weeks the plan has failed in the Senate. The House already passed the GOP-backed proposal in a 217-212 vote, but it needs the support of at least seven Democrats to move through the Senate. The Senate on Wednesday rejected for a third time Republicans’ plan to keep the government open in a 55-45 vote and also voted 53-47 against a Democratic proposal. The major factor dividing Republicans and Democrats is Democrats’ demand for an extension of federal tax credits under the Affordable Care Act set to expire at the end of the year. Republicans have accused Democrats of forcing a shutdown and alleged they want undocumented immigrants to have access to public healthcare benefits (though they’re not legally allowed to).
There were some signs negotiations were progressing as of Wednesday afternoon. A bipartisan group of senators huddled on the Senate floor to discuss an alternative to the failed GOP funding plan, with the possibility of offering some healthcare-related concessions to Democrats, Politico reported, citing several senators involved in the discussions. The Senate is out of session Thursday for Yom Kippur and the next vote on legislation to reopen the government isn’t expected until Friday. Vance predicted Wednesday the shutdown wouldn’t last “that long” but placed the onus on Democrats, while continuing to falsely claim they want to provide illegal immigrants with free healthcare.
The Congressional Budget Office said 750,000 workers could be furloughed daily in a shutdown, with their compensation totaling $400 million, in a letter Tuesday to Sen. Joni Ernst, R-Iowa. Several agencies have said they will furlough more than half their workers, including the Environmental Protection Agency (89%), the Education Department (87%) and Commerce (81%), according to The New York Times. Key economic data collection activieis from the Labor Department will also be suspended, meaning Friday’s Bureau of Labor Statistics report on nonfarm payroll growth, its weekly report on jobless claims released each Thursday and potentially the next consumer price index report scheduled for Oct. 15 will not be released. Some federal agencies, such as the federal housing administration, a division of the Department of Housing and Urban Development, would stop processing new loans, and routine inspections by the Food and Drug Administration and EPA would be curtailed or stopped. Some contracts and grants, including those from the National Institutes of Health to fund research at outside organizations, such as universities, will freeze. In the previous shutdown, some air traffic controllers and Transportation Security Administration officials stopped showing up for work after weeks without pay, causing flight delays at major airports.
Mandatory programs, such as Social Security, Medicare and Medicaid, veterans’ disability and pension payments and federal student loans will continue making payments. Food assistance programs, including SNAP and the federal program to assist women, infants and children, are also exempt, “subject to the availability of funding,” according to the U.S. Department of Agriculture contingency plan. Other programs funded by fees, rather than annual congressional appropriations, will also operate normally, including the U.S. Postal Service and passport and visa processing. Essential employees, including active military personnel and air traffic controllers, are required to continue working. Some activities related to public health, including monitoring for disease outbreaks and foodborne illness, are also exempt from the shutdown. National parks will remain open, but most National Park Service staff will be furloughed, with the exception of personnel performing “activities necessary to protect life and property” and those required by law, such as law enforcement and emergency response, and protection of federal lands and property within the National Park System, according to Interior Department Guidance. The Smithsonian Institution said its museums and National Zoo will remain open through at least Oct. 6 using funding from the previous year. The Internal Revenue Service will also continue operating normally for the first five days of the government shutdown using previously allocated funding from the Inflation Reduction Act.
In a post on X, Senate Minority Leader Chuck Schumer, D-N.Y., wrote: “IT’S MIDNIGHT. That means the Republican shutdown has just begun because they wouldn’t protect Americans’ health care. We’re going to keep fighting for the American people.” Schumer also issued a joint statement with House Minority Leader Hakeem Jeffries, D-N.Y., which read: “After months of making life harder and more expensive, Donald Trump and Republicans have now shut down the federal government because they do not want to protect the healthcare of the American people...Over the last few days, President Trump's behavior has become more erratic and unhinged. Instead of negotiating a bipartisan agreement in good faith, he is obsessively posting crazed deepfake videos.” Rep. Jamie Raskin, D-Md., tweeted: “MAGA’s government shutdown was totally avoidable, and I will keep fighting hard to get government back open.” Rep. Jasmine Crocket, D-Texas., wrote: “Make no mistake: Republicans control the House, the Senate, and the White House. This is THEIR shutdown. They had every tool to govern and chose chaos instead.”
In an X post, Johnson, wrote: Democrats have officially voted to CLOSE the government. Results: Moms and kids now lose WIC nutrition. Veterans lose health care and suicide prevention programs. FEMA has shortfalls during hurricane season. Soldiers and TSA agents go UNPAID. The only question now: How long will Chuck Schumer let this pain go on — for his own selfish reasons?” The White House’s official website now displays a government shutdown clock and a running chyron which says: “Democrats Have Shut Down the Government.” Trump hasn’t posted anything since the shutdown began, but earlier on Tuesday night, he shared another altered video mocking Jeffries by overlaying a mustache and sombrero over his face, similar to an AI generated deepfake he posted on Monday night.
Trump told Politico “I don’t worry about that” in an interview published Tuesday whether he fears Americans will blame Republicans for a shutdown. Calling Democrats “deranged,” Trump claimed they “want to destroy healthcare in America by giving it to millions and millions of illegal aliens,” referring to Democrats’ proposal to undo provisions of Trump’s signature policy bill passed earlier this year that would block some noncitizens from public health benefits, according to Politico. Most undocumented immigrants are not eligible to enroll in federally funded healthcare programs, including Medicaid and Medicare, or purchase coverage through Affordable Care Act marketplaces. On Monday, following their meeting, Trump posted an AI-generated video showing House Minority Leader Hakeem Jeffries, D-N.Y, with a sombrero and a mustache standing next to Senate Majority Leader Chuck Schumer, D-N.Y., as he claims Democrats want to give healthcare to “all these illegal aliens . . . so they can vote for us,” prompting Jeffries to call the video “disgusting” and Schumer to accuse Republicans of throwing “tantrums.” Trump has also repeatedly brought up gender-affirming healthcare in discussing the government shutdown—telling reporters last week “if it has to shut down, it’ll have to shut down,” alleging Democrats “want to have transgender for everybody,” calling them “crazy.” It’s unclear what he’s referring to. Politico notes some Trump allies argue that an extension of federal tax credits in the Affordable Care Act, which Democrats insist on, continues taxpayer support for gender-affirming healthcare, since five states require insurance to cover some services.
Trump threatened Democrats on Tuesday that the federal government could “do things during the shutdown that are irreversible . . . medically and other ways, including benefits, we can cut large numbers of people,” warning the GOP was prepared to blame Democrats for the permanent reductions and predicting a shutdown is “probably likely” but not “inevitable.” The Office of Management and Budget also instructed federal agencies in a memo last week to formulate plans for mass layoffs if the government shuts down by identifying programs whose discretionary funding expire on Oct. 1, along with those that don’t align with Trump’s agenda. The move was widely viewed as a way to exact maximum pain on Democrats if they refuse to agree to Republicans’ proposal to avert a shutdown by setting the stage to blame them for staffing reductions. Schumer called the threat to fire federal workers if the government shuts down “an attempt at intimidation” in a statement.
The Senate on Sept. 19 rejected proposals from both Republicans and Democrats to keep the government open, with the Republican plan failing in a 44-48 vote, short of the 60 needed to break the filibuster. Sen. John Fetterman, D-Pa., voted alongside Republicans to approve their plan to continue the existing budget through Nov. 21, while Sens. Rand Paul, R-Ky., and Lisa Murkowski, R-Alaska, were the only two Republicans to vote against it. The Democratic plan was rejected 47-45, with seven Republican senators missing the vote.
Democrats could benefit politically from forcing a shutdown, according to political experts, who have noted it’s one of the few tools they have to counter Republicans, who control all three branches of government, since the GOP needs at least seven Democratic votes to move the legislation through the Senate. It’s a risky move as shutdowns are generally unpopular with voters.
In recent previous shutdown negotiations, a small coalition of right-wing Republicans have threatened to withhold their votes if the new spending plan doesn’t adhere to their demands, while Democrats have typically been averse to shutdowns. Democrats, polling at their lowest level in history, according to Gallup, have a unique opportunity to use the shutdown negotiations as a show of resistance to the Trump administration, and potentially pave a way for the party to rebuild its image ahead of next year’s midterm elections.
The last time the government shut down, during Trump’s first term in December 2018, it was the longest shutdown on record, lasting 35 days. At the center of the dispute was Trump’s demand for more border wall funding, which he eventually abandoned to allow the government to reopen.
$1 billion. That’s how much disruptions in air and rail travel and national parks and museum closures could cost the economy during a shutdown, according to tourism officials.
Trump Calls Off Meeting With Democrats: Blasts ‘Ridiculous Demands’ (Forbes)
White House Budget Office Threatens Mass Firings If Government Shutdown Happens (Forbes)
Democrats Could Benefit From A Government Shutdown—Here’s Why (Forbes)