Shutdown Freezes Billions, Threatens Thousands of Jobs

The government shutdown entered its second day as the White House warned that “thousands” of federal employees could be furloughed or laid off and said the Office of Management and Budget is preparing reduction plans. President Trump plans to meet OMB Director Russell Vought, a Project 2025 architect, to decide which programs and “Democrat agencies” to cut and whether reductions will be temporary or permanent. The administration has frozen or canceled billions in grants and funding — including transit and green-energy projects to Democratic-leaning states — and says it will not negotiate with Democrats while the shutdown continues. Federal employee unions have filed lawsuits seeking to block mass firings, but some court actions allowing personnel moves have proceeded amid litigation. Officials say the moves are part of a broader effort to shrink agencies deemed misaligned with the administration’s priorities and warn of possible large-scale, long-term cuts if the shutdown persists; congressional activity has been limited by the Yom Kippur holiday.