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2h ago

Trump Uses Shutdown to Press Cuts, Plan Federal Layoffs as OMB Halts Blue-State Funds

The funding lapse is being used as a Project 2025-style reset, drawing union lawsuits over firings plus ethics complaints about partisan agency messaging.

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The sky begins to brighten just before sunrise behind the U.S. Capitol on the second day of a federal government shutdown in Washington, D.C. on Oct. 2, 2025.
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Overview

  • On day two of the partial shutdown, roughly 750,000 federal employees face furloughs as non‑essential IT modernization is paused and cybersecurity teams operate with skeleton staffing.
  • President Trump said he met with OMB Director Russell Vought to identify “Democrat agencies” for cuts and potential permanent layoffs, with the White House press secretary saying losses are likely in the thousands.
  • Vought has frozen $18 billion for New York transit projects and about $8 billion for climate-related initiatives in Democratic-led states, moves he linked to reviews of DEI and clean‑energy spending.
  • Multiple agencies posted or directed partisan messages blaming Democrats for the shutdown, prompting watchdog complaints alleging Hatch Act and ethics violations as oversight offices operate with reduced capacity.
  • Federal unions sued to block planned reductions in force during the funding lapse, and legal experts say mass firings executed now could be unlawful and tied up in court for months.