Particle.news

Download on the App Store

Shutdown Enters Day Three as White House Warns of Mass Layoffs and Freezes Billions in Grants

Democrats are withholding votes to secure Affordable Care Act subsidy extensions, with OMB pressure tactics escalating and roughly 750,000 furloughs projected each day.

Overview

  • Senate efforts to pass a seven‑week stopgap repeatedly failed 55–45, and leaders signal another likely failed vote Friday that could push the lapse into next week.
  • White House press secretary Karoline Leavitt said layoffs are likely to be in the thousands, while legal permanent job cuts would require a formal Reduction in Force process.
  • President Trump called the funding lapse an "unprecedented opportunity" to shrink the federal workforce and met with OMB Director Russ Vought about targeting agencies for cuts.
  • OMB has paused or clawed back major discretionary funds, including about $18 billion for New York transportation projects and $8 billion for clean‑energy spending.
  • The CBO estimates roughly 750,000 federal employees could be furloughed daily, while many benefits such as SNAP, Medicaid, Social Security and Section 8 continue for now, and fee‑funded USCIS remains open though some Labor Department‑dependent visa filings are stalled.