Overview

• The Office of Management and Budget froze roughly $18 billion for New York subway and Hudson Tunnel projects, priorities in the home state of Chuck Schumer and Hakeem Jeffries.
• The Congressional Budget Office said funds from the recently enacted “One Big Beautiful Bill” can pay Department of Defense and Homeland Security workers during the lapse.
• White House Press Secretary Karoline Leavitt said mass federal layoffs are imminent, signaling a shift from routine furloughs toward permanent cuts.
• Several federal agencies disclosed furlough contingency plans in response to the funding lapse.
• Congress is paused for Yom Kippur with senators due back Friday and the House set to resume next week, leaving the standoff unresolved.