As the U.S. government shutdown enters its second day, former President Donald Trump has characterized the funding halt as a significant opportunity to pursue his agenda of reducing the federal workforce and cutting departmental budgets. On social media, Trump announced his intentions to meet with Russell Vought, the head of the White House Office of Management and Budget, known for overseeing large-scale federal layoffs and employee buyouts.
The shutdown occurred at midnight on Wednesday after Democrats rejected a Republican funding proposal unless it included specific healthcare concessions. Vought has suggested that the shutdown could facilitate additional layoffs and has cancelled billions in federal funding for projects associated with Democrats. Approximately $18 billion has been frozen for infrastructure projects in the New York City area, which Vought criticized as tied to “unconstitutional DEI principles” — a reference to diversity, equity, and inclusion policies that Trump opposes. The halted projects include the Second Avenue subway line and the Hudson River tunnel.
Top Democratic leaders, including Chuck Schumer and Hakeem Jeffries, have voiced strong opposition to these funding cancellations, emphasizing their impact on working-class citizens. Additionally, Vought indicated that around $8 billion earmarked for 16 states governed by Democrats was similarly put on hold, labeling it as funding for a “Green New Scam” tied to climate initiatives.
The White House has conveyed that imminent layoffs are a possibility, marking a change from previous shutdown protocols where federal workers were either furloughed or asked to work without pay. Some Republicans have expressed unease about using the shutdown as leverage for job cuts, while the broader impact of the shutdown remains uncertain. National parks and museums are operating with reduced services.
Currently, there appears to be no resolution to the funding impasse in Congress, as negotiations stall with both parties standing firm on their positions.
Source: https://www.theguardian.com/us-news/2025/oct/02/government-shutdown-federal-workers-funding-freeze