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White House Freezes New York Funds, Signals Layoffs as Trump Calls Shutdown a ‘Democrat Forced’ Opportunity

The shutdown stems from a dispute over extending Affordable Care Act premium subsidies.

Overview

  • Federal funding lapsed at midnight on October 1 after Congress failed to pass a stopgap measure, triggering a government shutdown.
  • President Donald Trump urged Republicans on Truth Social to “clear out dead wood, waste, and fraud,” casting the closure as a chance to shrink the federal workforce.
  • Press Secretary Karoline Leavitt said dismissals were imminent, and OMB Director Russ Vought said the administration would look for opportunities to reduce the government’s size and scope.
  • The Office of Management and Budget froze roughly $18 billion for New York’s subway and Hudson Tunnel projects, affecting priorities for Senate Majority Leader Chuck Schumer and House Democratic Leader Hakeem Jeffries.
  • Archived interviews from 2011 and 2013 resurfaced in which Trump said shutdowns reflect on the president, drawing attention to a contrast with his current statements.