
Government Shutdown Highlights: The US government is now staring at the second day of shutdown, which began from 12:01 am Wednesday, after Trump and the Democrats failed to strike a deal — risking the furlough or possible permanent layoff of thousands of federal employees.
When was the last government shut down in the USA?
The current US government shutdown marks the first in nearly seven years. The last time US government experienced a 'partial' shutdown, was during Donald Trump's first term in 2018.
What is a government shutdown in the US?
All non-essential services are halted in a government shutdown. Excepted employees, i.e. those who perform work to protect life and property – stay on the job and continue to work, but do not get their pay until after the shutdown has ended.
What's open, what's closed?
Flights, mail and other essential services are likely to operate as usual. On Thursday, Trump cancelled 321 key energy projects.
Stay tuned to LiveMint for all the LIVE Updates on US Government Shutdown
US Government Shutdown LIVE: The Donald Trump administration announced on 3 October 2025 that it has frozen $2.1 billion in Chicago transit funding, as the government shutdown marked its third day on Friday, reported the news agency Reuters.
The agency report also highlighted that the ruling US government has frozen at least $28 billion in funding for Democratic cities and states amid Trump's campaign to use the US government's power against his Democratic rivals.
US Government Shutdown LIVE: The US job growth is slowing down even without the government data released from the Bureau of Labour Statistics due to the government shutdown, reported Bloomberg.
According to the agency report, a number of private-sector indicators have recently pointed out the sluggish hiring, limited layoffs, modest pay gains and easing demand for workers in September 2025.
US Government Shutdown LIVE: The US federal government has put $2.1 billion worth of Chicago infrastructure projects on hold amid the US government shutdown, reported the news agency Reuters, citing Office and Management and Budget Director Russ Vought.
The current US government shutdown marks the first such instance in nearly seven years.
Notably, the last time US government experienced a ‘partial’ shutdown, was during Donald Trump's first term in 2018.
The early polling data suggests that US President Donald Trump and his Republican Party (i.e. GOP) face sharper public backlash as the shutdown stretches on.
According to a survey by Washington Post, nearly two-thirds of Americans are already concerned, and analysts warn that continued gridlock could erode trust further in both parties, though the immediate political cost appears heavier for Republicans.
A survey by the New York Times/Siena College before the shutdown began showed that voters were more inclined to spread the blame equally between both parties:
The NYT poll had 1,313 registered voters, and carried a margin of error of ±3.2 percentage points.
The White House on Thursday (local time) warned that "thousands" of federal workers could lose their jobs if the ongoing government shutdown drags on, adding to mounting political tensions in Washington.
White House Press secretary Karoline Leavitt told reporters outside the White House that administration officials were already preparing for possible layoffs. "It's likely going to be in the thousands," she said, noting that the Office of Management and Budget (OMB) and other officials were actively discussing which departments could be affected, Fox News reported.
A Washington Post poll found that 47 per cent of Americans want both an extension of health insurance subsidies and for Democrats to insist upon it amid the US government shutdown.
The survey of 1,010 people was conducted on Wednesday, with a margin of error of ±3.5 percentage points.
As the US government enters its first shutdown in seven years, millions of federal workers face unpaid leave, and essential services like air travel are disrupted. Learn how this budget impasse affects everyday Americans and what it means for the future. Read here
Two days into the latest federal government shutdown, a new poll shows growing frustration among Americans, with President Donald Trump and the Republican Party receiving more of the blame than Democrats.
According to a Washington Post survey released on Thursday, 47% of respondents said Trump and the GOP were chiefly responsible for the shutdown. By comparison, 30% held Democrats responsible, while 23% said they were uncertain who to blame.
Alyce Andres, Macro Strategist, Markets Live told Bloomberg, “Revelio Labs showed a more than 60,000 gain in total non-farm payrolls in September. With official data delayed, such private data gains in importance. And with the Federal Reserve focused weakness in the labour market, the bond markets are uber sensitive to it.”
The US Treasuries are facing delays as a second day of government shutdown held back economic data and left investors without labor market readings for signals on the Federal Reserve’s next steps, according to a Bloomberg report.
It noted that yields in US afternoon trading on October 2 were back within two basis points of their previous closing levels after retreating from session highs.
Speaker Mike Johnson claimed that President Trump has the authority to lay off federal workers and withhold funding for ongoing approved projects.
Johnson said Democrats handed “the keys of the kingdom to the president” by allowing funding lapses.
He explained that when Congress stops funding and resources run out, it becomes the president’s responsibility to decide how remaining resources are spent.
Johnson emphasized that this authority was granted by Democrats in the Senate.
He added that Democrats “can’t complain” about Trump using this power, and the president does not want to avoid his responsibility.
The comments were made during a news conference responding to questions from NBC News.
The FBI Agents Association warned that a continuing government shutdown will curtail travel, training, hiring, and other essential FBI operations.
These restrictions will slow investigations, delay forensic analysis, and weaken coordination with state, local, and international law enforcement partners.
FBI agents will continue working without pay during the shutdown.
White House press secretary Karoline Leavitt said the administration is preparing for potential layoffs of “thousands” of federal workers.
She noted the estimate is “likely going to be in the thousands.”
The US government shutdown is expected to extend into next week.
GOP-backed short-term funding bill again come up for voting on Friday.
The Senate does not plan to remain in session over the weekend.
Senate Majority Leader John Thune said it is “unlikely” the Senate will stay in town for weekend voting.
Thune noted Friday will be the fourth vote attempt to reopen the government.
If the Friday vote fails, senators will return on Monday to vote again.
The Senate adjourned without holding votes on Thursday.
The move was made in recognition of the Yom Kippur holiday.
The chamber will reconvene at 11:30 a.m. on Friday.
Senators plan to vote again on Republican and Democratic bills aimed at extending government funding.
Both bills have failed in earlier attempts to pass.
US Government Shutdown LIVE: Around hundreds and thousands of workers have been furloughed across several federal agencies including Energy, Labour, Education among others
US Government Shutdown LIVE: The Senate will not hold votes today in observance of the Yom Kippur holiday — with reports stating that the stalemate could be dragged till Friday
US Government Shutdown LIVE: Unlike previous cases, the current shutdown has been triggered by Democrats demand for add-ons: more than $1 trillion for health care programs, and limits on President Trump’s spending power, as per reports.
In a post on Truth Social, Trump claimed that the Democrats want to give the healthcare money to 'illegal aliens' and open borders to the criminals of the world. "A deadly combination because everybody will come!," said Trump.
Donald Trump said he will meet OMB chief Russ Vought, to determine which 'Democrat' agencies need to be cut
US Government Shutdown LIVE: White House press secretary Karoline Leavitt told reporters on Wednesday, that layoffs of federal workers because of the government shutdown are “imminent"
US Government Shutdown LIVE: The shutdown is likely to extend at least till Friday, with the Senate set to be out of session on Thursday in observance of Yom Kippur, as per multiple reports.
US Government Shutdown LIVE: According to CNBC, NASA staff and contractors working on Artemis – the moon exploration program that contracts with Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin – will stay on the job during the shutdown. They will be paid only after the shutdown ends
US Government Shutdown LIVE: The dollar slipped Wednesday as the US entered its first government shutdown in nearly seven years
The Trump administration froze billions of dollars for major projects in New York, intensifying a stand-off with Democrats over a US government shutdown.
In a post on social media platform X, Russell Vought, who heads the powerful Office of Management and Budget, called the slashed projects "Green New Scam funding" that was used to advance "the Left's climate agenda".
He listed the states affected by the decision. They include California, New York and 14 others -- all blue states where Trump failed to win in the 2024 presidential elections.
The Department of Energy announced on Thursday "the termination of 321 financial awards supporting 223 projects, resulting in a savings of approximately $7.56 billion for American taxpayers."
It said in a statement that those projects -- overseen by the Office of Clean Energy Demonstrations, the Office of Energy Efficiency and Renewable Energy and other bodies -- "did not adequately advance the nation's energy needs... and would not provide a positive return on investment of taxpayer dollars."
The dollar slipped Wednesday as the US entered its first government shutdown in nearly seven years and a report showing private-sector payroll growth turning negative kept a lid on the US currency.
The torch of the Statue of Liberty, one of America’s most enduring symbols, could soon go dark as the federal government shutdown stretches on. With funding halted and no resolution in sight, New York leaders have warned that the state will not step in to keep the landmark open once federal support runs out. Read more
Republican House Speaker Mike Johnson took a different tone, saying the White House would use the government closure to slash the federal bureaucracy.
The shutdown gives Republicans an opening to “do some things that we would not otherwise be able to do, because we would never get Democrat votes for them,” Johnson told Fox Business on Wednesday.
Vice President JD Vance said Republicans don’t want to “lay anybody off” during the federal shutdown, insisting that Democrats would be held responsible for any negative consequences of the government closure.
House Minority Leader Hakeem Jeffries maintained that Democrats are ready to collaborate across the aisle to reopen the government.
“We’re ready to work together to bring it back open, but to do it in a way where we enact a spending agreement that’s bipartisan, that meets the needs of the American people, while at the same time addresses the Republican health care crisis that is devastating everyday Americans all across the country,” Jeffries told CNN today.
He said he hasn’t heard from the White House since Monday, when he and other congressional leaders met with President Donald Trump.
Billions of dollars of climate funding in mainly Democratic-led states will be canceled, according to the Office of Management and Budget director Russ Vought.
“Nearly $8 billion in Green New Scam funding to fuel the Left’s climate agenda is being cancelled. More info to come from @ENERGY. The projects are in the following states: CA, CO, CT, DE, HI, IL, MD, MA, MN, NH, NJ, NM, NY, OR, VT, WA,” Vought posted on X earlier on Wednesday.
All but two of the 16 states targeted have Democratic governors. New Hampshire Gov. Kelly Ayotte and Vermont Gov. Phil Scott are Republicans.
It’s not yet clear which projects are being impacted.
President Donald Trump denied today that he wanted a government shutdown as an excuse to permanently cut Democratic programs and fire more federal workers.
“Well, there could be firings, and that’s their fault,” Trump said, referring to Democrats, in an interview clip released by One America News (OAN). “We could cut projects they wanted, favorite projects, and they’d be permanently cut.”
“A lot of people are saying ‘Trump wanted this’ — that I wanted this closing, and I didn’t want it. But a lot of people are saying it, because I’m allowed to cut things that should have never been approved in the first place, and I will probably do that,” Trump said.
Amid “an unprecedented range of national security and criminal threats,” the organization representing thousand of current FBI agents warned its members on Wednesday that the current federal government shutdown could potentially endanger the safety of Americans.
The FBI Agents Association said “a shutdown can undermine the FBI’s ability to perform its duties at a time when the country faces an unprecedented range of national security and criminal threats — from fentanyl trafficking and terrorism to violent crimes against children and cyberattacks", CNN reported.
“Republicans must use this opportunity of Democrat forced closure to clear out dead wood, waste, and fraud. Billions of Dollars can be saved. MAKE AMERICA GREAT AGAIN,” Donald Trump
The nonpartisan Congressional Budget Office has estimated roughly 750,000 federal workers would be furloughed on any given day during the shutdown, a loss of $400 million daily in wages.
Thailand's central bank must be prepared to deploy tools to maintain currency stability to prevent impacts on imports and exports in the event of a prolonged US government shutdown, a deputy finance minister said on Thursday.
Thailand should also prepares export risks management and business support measures to mitigate the potential impacts, Vorapak Tanyawong said in a Facebook post.
Donald Trump's administration on Wednesday froze $26 billion for Democratic-leaning states, following through on a threat to use the government shutdown to target Democratic priorities.
The targeted programs included $18 billion for transit projects in New York, home to Congress's top two Democrats, and $8 billion for green-energy projects in 16 Democratic-run states, including California and Illinois. Vice President JD Vance, meanwhile, warned that the administration might extend its purge of federal workers if the shutdown lasts more than a few days.
A key responsibility of the department is overseeing the $1.6 trillion federal student loan portfolio. According to its shutdown contingency plan, student aid will mostly remain unaffected in the short term. Pell Grants and federal student loans will still be distributed, and borrowers are still required to make their loan payments. Read more
The Trump administration urged a federal judge in Boston to pause its legal fight with Harvard University over more than $2 billion in research funding, citing the US government funding impasse. In their filing Wednesday, government lawyers cited their inability to work on civil litigation during the shutdown, and asked that “all current deadlines for the parties be extended” for the duration of the funding lapse.
"The Trump administration is targeting the jobs, thousands of jobs of hard-working Americans," Hakeem Jeffries, Minority Leader of the U.S House of Representatives, said.
"Working-class Americans and blue collar Americans will lose the ability to work at the Second Avenue Subway site or at the other project that has been canceled related to the Cross-Harbor Tunnel. That's consistent with what the Trump administration has consistently done throughout their time in office — lose jobs, cause economic pain and hardship for the American people."
Vice President JD Vance on October 1 called Democrats’ claim that they are not trying to provide taxpayer-funded healthcare to illegal immigrants “preposterous.”
Vance said Democrats want to reinstate federal funding for emergency healthcare for illegal immigrants that was ended under the Trump administration.
Quote from Vance: “They say, ‘We're not actually trying to give healthcare benefits to illegal aliens,’ … And here's why it's not true.”
First Biden-era program provided illegal immigrants emergency healthcare at hospitals.
Vance: “We turned off that funding because… we want American citizens to benefit from those hospital services.”
Vance claims Democrats’ plan to reopen the government would reverse these Trump-era restrictions.
“The first thing that they put out to reopen the government, they actually turned that money for healthcare benefits for illegal aliens back on.” (Source: Fox News)
The US government shutdown is expected to continue for at least three days. The Senate will be out of session tomorrow for Yom Kippur. Senators are not expected to vote on funding until Friday, over two days after the shutdown began.
The Trump administration on Wednesday announced that, due to the ongoing government shutdown, it is halting approximately $18 billion in funding for major transportation projects, including a new rail tunnel under the Hudson River connecting New York City and New Jersey, as well as the planned extension of the city's Second Avenue subway, AP reported.
Yes, furloughed federal workers will receive the pay. In 2019, Congress passed legislation mandating that furloughed employees receive retroactive pay once government operations restart.
Although they will ultimately be compensated, furloughed workers, as well as those still working, may miss one or more regular paychecks depending on the duration of the shutdown.
White House Budget Director Russell Vought is preparing to rapidly fire federal employees, indicating that Republicans are embracing aggressive tactics to force Democrats to concede and bring an end to the government shutdown. According to sources cited by Bloomberg, Vought informed House lawmakers on Wednesday that certain federal agencies plan to begin terminating staff within just one to two days.
Crowds boarded boats to visit the Statue of Liberty and Ellis Island, seemingly unaffected by the government shutdown that has led to the furlough of roughly two-thirds of National Park Service staff. However, in Philadelphia, often called the birthplace of the nation, visitors hoping to see the Liberty Bell were met with disappointment. Despite the pleasant fall weather at Independence Mall, they were turned away at the entrance and left to view the iconic symbol only through the glass of its pavilion, AP reported.