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4d ago

Shutdown to Drag Into Next Week After Fourth Failed Senate Vote

Democrats are withholding the votes Republicans need in the Senate unless expiring ACA premium credits are extended and recent Medicaid cuts are reversed.

The U.S. Capitol is seen on the second day of the government shutdown, in Washington, Thursday, Oct. 2, 2025. (AP Photo/J. Scott Applewhite)
Screenshot of an AI generated President Trump taken from the video he shared on social media.
Screenshot from an AI-generated video posted by President Donald Trump on Oct. 2, 2025 set to "Don't Fear the Reaper." Image: Truth Social / Donald Trump
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Overview

  • Senate leaders adjourned without a weekend session after a fourth failed vote on a short‑term funding bill that fell well short of the 60 votes required, leaving no immediate path to reopen the government.
  • The administration escalated pressure tactics by cancelling 321 Department of Energy awards worth about $7.56 billion and freezing nearly $18 billion for New York rail projects plus $2.1 billion for Chicago transit, citing reviews of alleged race‑ or sex‑based contracting and DEI practices.
  • OMB is preparing plans for potential permanent layoffs as President Trump threatens to convert furloughs into redundancies, with budget director Russell Vought set to brief Republican senators next week.
  • Operations are already disrupted as the Labor Department delayed the monthly jobs report, tourist sites closed, and an estimated 750,000 federal employees face daily furloughs with roughly $400 million in lost compensation each day.
  • Legal and political backlash is mounting as unions sue over partisan agency messaging and altered staff email notices, and centrist Republicans warn that targeting Democratic‑led projects could undermine trust needed for a deal.