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

National monuments across the United States are closing their doors to visitors due to the government shutdown, but tourists heading to the Statue of Liberty won’t be affected.

“Thanks to the leadership of President Donald J. Trump both Ellis Island and the Statue of Liberty remain open for the enjoyment of the American people,” a spokesperson for the Department of the Interior told the BBC.

Speaking on the Senate floor, Majority Leader John Thune once again called on Senate Democrats to support the House-passed continuing resolution (CR) to reopen the government.

The Senate will not vote on funding bills Thursday but is expected to resume consideration of competing proposals Friday afternoon.

In a Truth Social post, Trump accused Democrats of wanting to divert healthcare funds to “illegal aliens” and open the borders to “criminals of the world.” He called it a “deadly combination,” warning, “everybody will come!”

When Congress fails to pass a funding bill, it falls to the OMB and the president to decide which federal functions are essential and which must pause. Vought is now making high-profile cuts and he is not hiding the political motivations behind them.

Vought announced several funding cancellations, specifically targeting programs he linked to left-leaning policies.

He also froze $18 billion earmarked for a major infrastructure project in New York City, claiming it was being run under “DEI principles,” a reference to diversity, equity, and inclusion initiatives.

Manhattan’s iconic Federal Hall closed to tourists as federal monuments close down during shutdown

In a post on Truth Social, Trump wrote, “I have a meeting today with Russ Vought, he of PROJECT 2025 Fame, to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut, and whether or not those cuts will be temporary or permanent. I can’t believe the Radical Left Democrats gave me this unprecedented opportunity. They are not stupid people, so maybe this is their way of wanting to, quietly and quickly, MAKE AMERICA GREAT AGAIN!”

President Trump posted on Truth Social this morning, stating he will speak with Office of Management and Budget (OMB) Director Russ Vought “to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut, and whether or not those cuts will be temporary or permanent.”

When asked whether the president has the authority to lay off thousands of federal workers, Johnson said yes.

He explained that Russ Vought, Director of the Office of Management and Budget (OMB), will coordinate with the president to decide which areas won’t receive funding during the shutdown.

“When Congress turns off the lights, it’s the president who determines what gets funded,” Johnson said, adding that any OMB director would prioritise the administration’s key initiatives to ensure those are funded first.

House Majority Leader Steve Scalise is placing blame for the government shutdown on Senate Democratic Leader Chuck Schumer.

“President Trump stands ready to resolve this, but the ball is in Chuck Schumer’s hands right now, he has chosen to shut down the government,” Scalise said.

He added that while negotiations are possible, they can only happen after passing a continuing resolution to temporarily fund the government and reopen federal operations.

Speaker Mike Johnson says the GOP has acted in good faith by proposing a clean, nonpartisan continuing resolution to keep the government running in the short term.

But Democrats argue that’s not sufficient. They are pushing to tie the funding measure to the extension of healthcare subsidies set to expire at the end of the year, demanding progress on that front

House Speaker Mike Johnson has begun speaking, accusing Democrats of being “selfish” for refusing to support the continuing resolution (CR) to keep the government open.

He added that he won’t negotiate on the measure, arguing that Democrats have supported similar CRs in the past.

The government shutdown began Wednesday after Republicans and Democrats in Congress failed to reach an agreement on a new spending plan.

The next Senate vote aimed at ending the shutdown is not scheduled until Friday, leaving federal workers and agencies in limbo.

So far, neither side has shown signs of compromise, raising concerns the standoff could continue, threatening hundreds of thousands of jobs and potentially costing the US economy billions in lost output.

In a Truth Social post, Trump accused Democrats of wanting to divert healthcare funds to “illegal aliens” and open the borders to “criminals of the world.” He called it a “deadly combination,” warning, “everybody will come!”

S&P 500 and tech-heavy Nasdaq opened at record highs on Thursday, boosted by renewed hopes for interest rate cuts. With little new economic data expected over the week as nation enter the second day of shutdown. In the early hours of trading, the Dow Jones Industrial Average (.DJI), opens new tab rose 20.0 points, or 0.04%, at the open to 46,461.11. S&P 500 (.SPX), opens new tab rose 20.1 points, or 0.30%, at the open to 6,731.31​, while the Nasdaq Composite (.IXIC), opens new tab rose 130.7 points, or 0.57%, to 22,885.905.

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.