In brief
In a dramatic turn during the ongoing government shutdown, President Trump is exploiting the situation to reshape the federal workforce, hinting at mass layoffs and withholding significant infrastructure funding, particularly impacting Democratic strongholds. As Congress remains gridlocked, the implications for federal workers and the broader economy loom large, raising concerns over potential job losses and stalled projects.
WASHINGTON (AP) — President Donald Trump is using the ongoing government shutdown as a chance to reform the federal workforce and retaliate against critics, warning of potential mass layoffs and suggesting irreversible cuts to programs significant to Democrats. This aggressive maneuver marks a departure from the typical response of simply furloughing employees during a funding lapse.
The White House press secretary, Karoline Leavitt, indicated that layoffs were imminent rather than furloughs, with the Office of Management and Budget halting roughly $18 billion in funding for vital infrastructure projects in New York, notably affecting Democratic leaders.
Trump commended his budget director, Russ Vought, for efficiently trimming the budget. In a press event, he pointed out the risks associated with the shutdown, engendering significant concern among lawmakers and budget analysts who had anticipated such a bold move by the administration.
With the shutdown entering its second day, fears arise that the impasse will grow deeper, leading to missed paychecks for federal workers. The nonpartisan Congressional Budget Office estimates that approximately 750,000 federal employees would be furloughed, translating to massive wage losses for the economy.
While Democrats hold firm on their health care funding demands, warning of steep premium increases for Americans, there's a growing discourse within GOP ranks indicating a willingness to negotiate. However, many Republicans suggest these discussions can wait until after the shutdown resolves.
The Trump administration has already begun shaping government operations by tapping into pre-approved funds intended for other purposes, maintaining critical immigration policies while delaying others.
The economic ramifications of the shutdown are becoming increasingly evident, as previous shutdowns have shown potential dampening effects on GDP and aggregate demand in the private sector. Experts warn that the sustained halt can lead to extensive pain for federal employees and the broader economy.
With no forthcoming meetings between Trump and congressional leaders, the likelihood of a swift resolution remains uncertain. As Congress takes breaks for the Jewish holiday, the House is rescheduled to resume sessions next week.
