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Trump Says Shutdown Likely Oct. 1, Threatens Mass Federal Layoffs

A narrow Republican majority plus internal divisions leave funding unresolved before the new fiscal year.

Overview

  • The president said a shutdown is "likely" but "not inevitable" as Congress has yet to pass funding for the new fiscal year.
  • He signaled he could use any stoppage to pursue large-scale staff cuts, telling reporters "we will lay off a lot of people."
  • Vice President J.D. Vance said the threat stems from disagreements with Democrats over government funding.
  • Without at least a short-term continuing resolution, funding would lapse, forcing furloughs of nonessential staff and halting noncritical spending.
  • An analyst said a shutdown lasting under a month would produce limited lasting economic effects but would immediately hit federal workers' incomes.