Overview

• A memo first reported by Politico shows the Office of Management and Budget directing agencies to identify non‑mandated programs for cuts and to file staff‑reduction plans while notifying employees.
• The guidance says programs without legal funding obligations would carry the "brunt" of a lapse, pointing to potential permanent layoffs that go beyond the furloughs typical in past shutdowns.
• Senate Democrats rejected a House‑passed short‑term funding measure, as their leaders press for protections for health coverage for poorer Americans in any agreement.
• President Donald Trump canceled a planned meeting with Democratic leaders and accused them of causing a possible shutdown, drawing rebukes from Chuck Schumer and others.
• With both chambers briefly recessed and the Oct. 1 deadline days away, time for negotiations is short and the risk of a funding lapse remains high.