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White House Plans Thousands of Federal Layoffs as U.S. Shutdown Enters Day Two

Treasury and the IMF say the economic toll will hinge on the shutdown’s duration.

Overview

  • The Pentagon placed 334,904 civilian employees on unpaid furloughs and said more than 2 million active‑duty service members will continue working without pay, while the State Department furloughed 10,436 staff.
  • White House press secretary Caroline Livitt said the administration will dismiss thousands of federal workers, and Politico reported plans to begin mass layoffs within days, a move Vice President J. D. Vance endorsed as part of shrinking the bureaucracy.
  • President Donald Trump said he will meet with OMB Director Russell Vought to identify federal agencies for funding cuts that could be temporary or permanent.
  • Treasury Secretary Scott Bessent warned the shutdown could hit GDP and American workers, and the IMF said the scale of damage depends on how long the funding lapse lasts.
  • Trump and Vance blamed Democrats for the impasse, alleging Democrats seek to direct federal money toward medical care for illegal migrants and to loosen border controls.