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White House says layoffs 'imminent' with no end to shutdown in sight

October 2, 2025

The U.S. government shutdown has entered its second day with the White House warning that mass layoffs of federal workers are "imminent" and could result in permanent job losses within days. President Trump has suggested using the shutdown as an "opportunity" to make lasting cuts to programs, while Republicans and Democrats remain deadlocked over spending priorities with Democrats seeking healthcare funding guarantees and Republicans pushing for a temporary funding measure. The shutdown, which began Wednesday after Congress failed to agree on a spending plan, may affect approximately 750,000 federal workers (40% of the federal workforce) who face unpaid furloughs, with essential workers required to work without immediate pay.

Who is affected

  • Approximately 750,000 federal workers (40% of the workforce) who face unpaid furloughs
  • Essential workers like border agents and military personnel who must work without immediate pay
  • Lower-income Americans whose healthcare benefits are at stake in the negotiations
  • The broader U.S. economy, which risks losing billions in output due to the shutdown

What action is being taken

  • The White House is preparing for potential mass layoffs of federal workers
  • President Trump is withholding $18 billion for infrastructure projects in New York City
  • Republicans are proposing a temporary stop-gap measure to fund the government until mid-November
  • Democrats are advocating for guarantees on healthcare funding before agreeing to a spending deal
  • Republicans and Democrats are publicly blaming each other for the shutdown in press briefings and statements

Why it matters

  • The shutdown threatens hundreds of thousands of federal jobs and could result in permanent job losses
  • The U.S. economy risks losing billions in output during the shutdown
  • Healthcare benefits for lower-income Americans hang in the balance
  • The political standoff reflects deeper divisions between the parties' priorities and approaches to governance
  • If prolonged, the shutdown could provide an opportunity for Trump to make what he describes as irreversible cuts to programs he opposes

What's next

  • Another vote on the Republican short-term funding bill is expected on Friday

Read full article from source: BBC