In brief
As the government shutdown enters its second day, President Trump is taking aggressive actions that could lead to mass layoffs of federal workers and significant cuts to key programs favored by Democrats. With $18 billion in infrastructure funding for New York on hold, Trump aims to utilize this crisis as an opportunity for a budget overhaul. The Congressional Budget Office warns the shutdown could result in substantial economic losses, while federal workers face the potential of missing paychecks.
WASHINGTON (AP) — President Donald Trump has seized on the government shutdown as an opportunity to reshape the federal workforce and punish detractors, by threatening mass firings of workers and suggesting irreversible cuts to programs important to Democrats.
Rather than simply furlough employees, as is usually done during any lapse of funds, White House press secretary Karoline Leavitt announced imminent layoffs. The Office of Management and Budget declared it was putting on hold roughly $18 billion of infrastructure funds for New York’s subway and Hudson Tunnel projects, in the hometown of the Democratic leaders of the U.S. House and Senate.
Trump praised his budget director, Russ Vought, saying, He can trim the budget to a level that you couldn’t do any other way,” highlighting the aggressive approach that many lawmakers had feared.
The standoff is raising concerns about its economic impact, with the Congressional Budget Office estimating a loss of about $400 million per day in wages as around 750,000 federal workers are likely to be furloughed, while the longer it drags on, the more pain it will cause.
Amidst this, Democrats are steadfast in their demands to preserve health care funding, warning of a resulting spike in insurance premiums for millions of Americans. The Republicans have indicated a willingness to negotiate healthcare issues, but for now, are focused on ending the standoff.
With Congress out of session for the Jewish holy day, the Trump administration is capitalizing on this shutdown to determine how to shape government operations moving forward, potentially disrupting many areas of public service while continuing immigration enforcement through tapped funds.
As the government remains shut down with no end in sight, the political implications of this standoff could echo well into the next few weeks, affecting the economy and federal worker livelihoods alike.
