US Government Shutdown Live Updates: White House warns of mass layoffs as shutdown continues into next week

Donald Trump announced that he will meet OMB Director Russ Vought to identify which ‘Democrat-controlled’ agencies should be cut

While Medicare and Medicaid, which provide healthcare for the elderly and low-income individuals, will continue operating, reduced staffing may cause delays.

Food assistance programs face more immediate challenges. The WIC program, supporting women, infants, and children, is expected to deplete its funds soon. SNAP, the food stamps program, might last longer but could also run out of money if the shutdown persists.

Emergency disaster relief efforts will mostly carry on, but other disaster-related activities will slow down. The National Flood Insurance Program will halt, potentially delaying home loans that require this coverage. Additionally, if the shutdown drags on, FEMA’s Disaster Relief Fund may also run out of money, further limiting disaster response efforts

Pressure is likely to increase if the shutdown extends beyond two weeks, when federal employees start missing paychecks. While markets may stay stable initially, prolonged uncertainty could spread throughout the economy. For now, ending the shutdown hinges entirely on a political agreement between Republicans and Democrats in Congress. Until then, millions of Americans will continue to face halted services, furloughed workers, and growing economic uncertainty.

Mass layoffs of federal workers could begin within days, with some employees potentially losing their jobs permanently, the White House has warned, as the government shutdown stretches into its second day with no resolution in sight.

Thousands of federal workers have already been placed on unpaid leave, as lawmakers in Congress continue to trade blame over the first government shutdown in nearly seven years.

The shutdown is expected to last at least until Friday, as the Senate will be out of session on Thursday in observance of Yom Kippur, as per multiple reports

Visa and passport services are unlikely to be directly impacted by a government shutdown because the US Citizenship and Immigration Services and the State Department’s Bureau of Consular Affairs are mainly funded by processing fees. That said, if a funding gap does happen, these agencies might face operational disruptions.

NASA employees and contractors involved in the Artemis moon mission, which partners with Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin, will continue working through the government shutdown. However, they won’t receive pay until the shutdown is over, as per CNBC.

Senators Bernie Sanders and Alexandria Ocasio-Cortez explain their opposition to the Republican-backed temporary funding bill, known as a “clean” continuing resolution. Sanders asks Ocasio-Cortez why she voted against the measure to keep the government running. “There’s nothing clean about it,” she replies, calling the bill “one of the dirtiest tricks” on the American people. Ocasio-Cortez warns that starting October 1, millions will see a spike in their health insurance premiums due to Congress failing to extend subsidies for low-income Americans.

The dollar weakened on Wednesday as the US faced its first government shutdown in nearly seven years.

President Donald Trump has used the ongoing government shutdown as a chance to reshape the federal workforce and target his political opponents, threatening mass layoffs and proposing “irreversible” cuts to programs favored by Democrats.

Instead of the usual practice of furloughing employees during a funding lapse, White House press secretary Karoline Leavitt stated that layoffs were “imminent.” Additionally, the Office of Management and Budget announced a freeze on approximately $18 billion in infrastructure funding designated for New York’s subway and Hudson Tunnel projects, located in the home state of the Democratic leaders of the U.S. House and Senate.

House Minority Leader Hakeem Jeffries emphasized that Democrats are prepared to work with Republicans to reopen the government.

“We’re ready to work together to bring it back open, but to do it in a way where we enact a spending agreement that’s bipartisan, that meets the needs of the American people, while at the same time addresses the Republican health care crisis that is devastating everyday Americans all across the country,” Jeffries told CNN today.

He also mentioned that he hasn’t heard from the White House since Monday, when he and other congressional leaders had a meeting with President Donald Trump.

The Department of Energy announced it is ending 321 financial awards across 223 projects, saving about $7.56 billion for US taxpayers.

At a White House briefing, Vice President Vance said the administration is not planning to fire federal workers because of their politics. He said that the focus is on keeping essential government services running, not targeting employees based on party affiliation. Vance also warned that if the shutdown continues for several more days or weeks, some layoffs will be unavoidable. He explained that money will need to be saved in certain areas to ensure that critical services remain operational during the shutdown.

Right now, the shutdown is mostly about angry words and online attacks. Trump is sharing crude, AI-made videos mocking his opponents, while Democrats are responding with photos linking him to Epstein and vowing to stay in the fight. The last shutdown lasted 35 days and caused major disruptions in air travel, even though it was only partial.

This time, the impact could be worse. If the shutdown drags on, it may not matter who “wins”, both parties could end up blamed. Incumbents from Democrats and Republicans could face voter anger next year, while public frustration grows. That frustration often opens the door for new politicians promising to shake up the system. And the cycle starts all over again.

Even if Democrats mostly stick together, the longer the shutdown lasts, the more pressure they will face to give in. Government workers, a key part of their support, are hit first, with delayed paychecks and fears that the Trump administration could use the shutdown to cut programs or make furloughs permanent.

The wider public also feels the impact through limited services and economic disruption. Usually, the party pushing for a shutdown, here, the Democrats, carries most of the blame. This could push them to end the standoff, even without winning major concessions.

Still, Democrats may take some satisfaction in highlighting upcoming cuts to health insurance subsidies and programs for the poor, which could help them politically in the long run. While their base may not be fully happy, party leaders might see this as a manageable compromise.

Senate Democrats blocked a Republican spending bill that would have kept the government running until November. But their vote may have caused trouble for them. 44 Democrats, along with Republican Rand Paul, voted against the bill. However, two Democrats and one independent who usually sides with Democrats, voted with the Republicans.

Independent Angus King of Maine is often unpredictable, and

John Fetterman of Pennsylvania has been following his own path for almost a year. But Catherine Cortez Masto of Nevada is different, she’s not a political rebel, reports BBC.

Republican Senate leader John Thune says some Democrats are already feeling uneasy about the government shutdown. He plans to hold several funding votes in the next few days to keep up the pressure.

No new Democrats voted against their party on Wednesday, but if five more do, the shutdown could end, whether the rest of the Democratic Party agrees or not.

The US Postal Service will not be affected by the government shutdown. All post offices will stay open and continue normal operations. This is because the Postal Service does not rely on Congress for money. Instead, it runs independently and earns its funding through the sale of its products and services, not tax dollars.

Medicare and Medicaid, which provide health care for the elderly and poor, will keep running. But fewer staff may cause some delays.

Food aid will be hit harder, reported BBC. The WIC programme for women, infants, and children is expected to run out of funds quickly. The SNAP programme (food stamps) may last longer but could also run out of money if the shutdown continues. Emergency disaster relief will mostly continue. But other disaster-related work will slow down. The National Flood Insurance Program will stop, which could delay home loans that need this insurance. The report added that if the shutdown lasts too long, FEMA may also run out of money for its Disaster Relief Fund.

On Live TV, US Senator Ted Cruz claimed that Trump is going to use the shutdown to “get rid of left-wing bureaucrats” (right out of Project 2025), adding “I think that’s fantastic.”

In a post on Truth Social, US President Donald Trump wrote, “Republicans must use this opportunity of Democrat forced closure to clear out dead wood, waste, and fraud. Billions of Dollars can be saved. MAKE AMERICA GREAT AGAIN!”

Donald Trump is using the government shutdown to reshape the federal workforce and target opponents. He has warned of mass firings of federal employees and “irreversible” cuts to Democrat-backed programs.

Instead of the usual furloughs during a shutdown, White House press secretary Karoline Leavitt said layoffs were “imminent.” The Office of Management and Budget also froze about USD 18 billion meant for New York’s subway and Hudson Tunnel projects, in the home state of top Democratic leaders

According to CBS News, the BBC’s US partner, these five government departments have the most staff sent home without pay during the shutdown:

– Department of Defense (civilian staff): 334,904 furloughed, 406,573 still working

– Department of Health: 32,460 furloughed, 47,257 still working

– Department of Commerce: 34,711 furloughed, 8,273 still working
– Department of State: 16,651 furloughed, 10,344 still working
– NASA: 15,094 furloughed, 3,124 still working

A government shutdown could cause problems for air travelers in many ways, including long security lines and flight delays. This may happen if unpaid air traffic controllers decide not to work without pay. Air traffic controllers and Transportation Security Administration (TSA) staff are classified as “essential,” which means they must still report to work. However, they won’t receive their salaries until the shutdown ends.

People planning to travel overseas could also face trouble, as US passport offices have warned that processing times for passports may become slower than usual.

The federal court system announced online that it plans to stay open until October 17 if the government shutdown continues that long. The notice said the courts will manage this “by using court fee balances and other funds not dependent on a new appropriation.”

Courts in Washington DC are not issuing marriage licenses while the government remains under shut down, according to a notice on the court’s website. During the 34-day shutdown in late 2018 and early 2019, the DC Council passed an emergency law called the LOVE Act, which allowed Mayor Muriel Bowser to issue marriage licenses. It is still unclear whether the council will take similar action if the current shutdown continues.

With the government shut down, Republicans are focusing on one key message: they say Democrats are halting government operations to provide free health care to illegal immigrants. This message, highlighted in a new ad by the National Republican Congressional Committee, has been repeated by GOP lawmakers and members of the Trump administration in recent days. Vice President JD Vance said on Fox News that the Republican bill had stopped health funding for illegal immigrants, and he claimed Democrats want to restore it. He added that this information comes directly from the text of the bill initially presented to reopen the government, not just as a talking point.

Each federal department and agency has its own rules for running during a shutdown. While many federal employees will be placed on furlough, some will still be required to come to work, even though they won’t be paid.

The Trump administration asked a federal judge in Boston to put its legal case against Harvard University on hold. The case involves more than $2 billion in research funding. In a filing on Wednesday, government lawyers said they cannot work on civil cases during the government shutdown and requested that all current deadlines be extended until the funding issue is resolved.

The department in charge of the $1.6 trillion federal student loan portfolio says most student aid will continue without interruption in the short term. Pell Grants and federal student loans will still be distributed, and borrowers are still expected to make their loan payments.

Thailand’s central bank needs to be ready to use all available tools to keep the currency stable if the US government shutdown lasts a long time, a deputy finance minister said on Thursday. Vorapak Tanyawong added that the country should also prepare plans to manage export risks and support businesses to reduce any negative effects on trade.