The federal government shut down at midnight on October 1, as President Donald Trump’s administration embarked on an unprecedented strategy of withholding billions in federal funds from Democratic-controlled states while threatening mass layoffs of federal workers.
This shutdown marks the first government closure in nearly seven years and is the fourth time it’s happened under a Trump presidency.
On the first day of the shutdown, Office of Management and Budget Director Russell Vought announced sweeping cuts specifically targeting states that voted against Trump in 2024. The administration moved to withhold approximately $26 billion in previously approved federal funding, with the cuts falling almost exclusively on Democratic-leaning states.
The most significant cuts include $18 billion in infrastructure funding for New York City projects, specifically targeting the Gateway tunnel project connecting New Jersey and New York, and the Second Avenue subway extension. Vought claimed these funds were being withheld due to “unconstitutional DEI principles,” though it remains unclear how tunnel construction conflicts with diversity, equity and inclusion policies.
Additionally, the administration announced the cancellation of nearly $8 billion in energy and climate funding across 16 Democratic states: California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New Mexico, New York, Oregon, Vermont, and Washington. Vought characterized these cuts as eliminating “Green New Scam funding to fuel the Left’s climate agenda.”
Beyond targeting state funding, the Trump administration has threatened unprecedented mass layoffs of federal workers during the shutdown. In a departure from traditional shutdown procedures where furloughed employees receive back pay once the government reopens, OMB has instructed agencies to prepare “Reduction in Force” (RIF) plans that could result in permanent job losses.
Vice President JD Vance confirmed at a White House briefing that layoffs are “imminent” unless the government reopens, stating “We will have to let some people go if the shutdown persists.”
The Congressional Budget Office estimates that approximately 750,000 federal employees could be furloughed daily during the shutdown, with many facing the prospect of permanent termination rather than temporary unpaid leave. The administration’s memo specifically targets employees whose work “is not consistent with the president’s priorities.”
The shutdown stems from a fundamental disagreement over healthcare policy, with Senate Democrats blocking Republican continuing resolution proposals three times. Democrats are demanding that any funding bill include an extension of enhanced Affordable Care Act tax credits set to expire at year’s end.
Without congressional action, approximately 22 million Americans receiving ACA subsidies could see their insurance premiums spike by more than 75%.
Donald Trump has repeatedly stated in the past that government shutdowns should be blamed on the president, making numerous public comments between 2011 and 2013 during Barack Obama’s presidency.
During the 2013 government shutdown under President Obama, Trump was particularly vocal about presidential responsibility. In a September 2013 Fox & Friends interview, Trump declared, “If you say who gets fired, it always has to be the top. Problems start from the top, and they have to get solved from the top, and the president’s the leader, and he’s got to get everybody in a room, and he’s got to lead.”
Perhaps Trump’s most direct statement came in 2011, when he said: “If there is a shutdown, I think it would be a tremendously negative mark on the President of the United States.”
