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1h ago

Shutdown Reaches Day 2 as Layoff Threats Mount and ACA Fight Stalls Senate

Democrats are blocking the GOP stopgap to secure an extension of enhanced Affordable Care Act tax credits.

Tourist crowd around a window to view the Liberty Bell with Independence Hall in the background in Philadelphia, Wednesday, Oct. 1, 2025. (AP Photo/Matt Rourke)
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FILE: Sunrise at Joshua Tree National Park, where visitors cut down trees and drove illegal offroad vehicles during the last federal government shutdown in 2018-2019.

Overview

  • Roughly 750,000 federal employees could be furloughed at a daily wage loss of about $400 million, and the Bureau of Labor Statistics has postponed the September jobs report.
  • The White House budget office froze about $18 billion for New York transit projects and roughly $8 billion for energy initiatives in 16 Democratic-led states, targeting spending during the funding lapse.
  • Press secretary Karoline Leavitt said layoffs are likely to be in the thousands within days, after OMB directed agencies to prepare reduction-in-force plans that depart from past shutdown practice.
  • The Senate has no votes Thursday due to Yom Kippur, another vote is expected Friday on a short-term bill, informal bipartisan talks have begun without a clear 60‑vote path, and the House is out until Oct. 7.
  • Democrats’ demand centers on extending expiring ACA premium subsidies, with KFF projecting sharp premium increases in several states if the enhanced tax credits lapse.