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1h ago

Shutdown Enters Day 2 With Layoff Threats and Targeted Funding Freezes

The standoff turns on Democrats conditioning any stopgap on restored ACA subsidies alongside a rollback of Medicaid cuts.

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File photo dated 18-09-2025 of US President Donald Trump. Moving matches away from 2026 World Cup host cities would be a decision for FIFA, not Donald Trump, the organisation's vice-president Victor Montagliani has said. Issue date: Wednesday 1st October, 2025. 81832816 (Press Association via AP Images)
US President Donald Trump looks on, on the day he announces a deal with Pfizer to sell drugs at lower prices.
Among the hardest hit will be the processing of H-1B visas and green cards, crucial for thousands of Indian professionals.

Overview

  • Senate efforts to advance a short-term funding bill failed in a 55–45 vote, below the 60 needed, with most Democrats voting no.
  • Roughly 750,000 federal employees face furloughs each day and many others must work without pay, with the CBO estimating $400 million in daily lost compensation.
  • The Bureau of Labor Statistics paused the monthly jobs report and other releases, removing key data that businesses and the Federal Reserve rely on.
  • The White House directed agencies to prepare layoff plans and froze about $18 billion for New York transit projects and $8 billion for green-energy programs, moves now facing union legal challenges.
  • Informal bipartisan talks have started in the Senate, no votes are planned Thursday for Yom Kippur, a Friday vote is possible, the House is out until Oct. 7, and early public impacts remain scattered as agencies navigate inconsistent guidance.