Overview

• The government closed after Congress failed to pass a stopgap by Sept. 30, entering a second day of shutdown as the White House touts a chance to shrink agencies.
• OMB Director Russell Vought paused roughly $18 billion for New York projects, including the Hudson Tunnel and Second Avenue Subway, and about $8 billion for clean‑energy initiatives across 16 largely Democratic-led states.
• The administration says federal employee layoffs are imminent, with prior OMB guidance directing agencies to prepare for firings during the shutdown.
• Republican reactions split, with Sen. Susan Collins calling the New York delays “totally unacceptable” and Sen. Kevin Cramer warning of political costs, while allies like Sen. Rick Scott cheer spending cuts.
• Democrats and unions are pursuing or preparing legal challenges over the freezes and layoff threats, as the administration says parks will stay open and Social Security, VA, Medicare and Medicaid benefits will continue, with some other assistance constrained.