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Shutdown Reaches Day 3 as Trump Weighs Permanent Agency Cuts and Layoffs

Senate negotiations are stuck over Democratic demands on health-care funding.

Overview

  • The funding lapse that began Oct. 1 has sidelined about 750,000 federal workers by CBO estimates as agencies carry out shutdown plans and public sites like parks and museums close.
  • The White House says thousands of job cuts are being prepared, with OMB moving on reduction‑in‑force planning even though permanent layoffs require formal procedures.
  • Trump said he met OMB Director Russ Vought to identify “Democrat agencies” for cuts, and OMB has frozen roughly $18 billion tied to New York subway and Hudson Tunnel projects.
  • Senate action remains constrained by the 60‑vote threshold, with Democrats seeking extensions of ACA subsidies and reversals of Medicaid cuts while Republicans press for a clean stopgap.
  • Essential and fee‑funded operations continue, including air traffic control, USCIS and SEVIS, and legal groups say SNAP, Medicaid, Social Security and most HUD rent aid should continue through October though delays could grow if the shutdown persists.