US Government Shutdown Live Updates: Trump to meet Budget director to decide which federal agencies could face cuts

Federal employees from shut-down agencies are either furloughed—prohibited from work, or required to work without pay if their roles are deemed essential to public safety.

At this time, it remains unclear how many of federal employees would be temporarily furloughed, required to work without pay, or subject to layoffs as part of Reduction in Force (RIF) initiatives by the Trump Administration.

Visa and passport services are not expected to be directly affected by a government shutdown, as the US Citizenship and Immigration Services and the State Department’s Bureau of Consular Affairs are primarily funded through processing fees.

However, if a funding shortfall were to occur, these agencies could experience disruptions in operations.

Many TSA and FAA employees are classified as essential workers and will continue typical operations. However, air travelers should anticipate longer wait times, delays, and possible cancellations due to staffing shortages caused by furloughs.

A government shutdown occurs when Congress is unable to pass the funding bills, known as appropriations, that keep federal agencies running into the next fiscal year, which begins on October 1. If no agreement is reached by September 30 11:59, a partial shutdown begins at 12:01 AM ET on October 1.

President Donald Trump has seized on the government shutdown as an opportunity to reshape the federal workforce and punish detractors, by threatening mass firings of workers and suggesting “irreversible” cuts to programmes important to Democrats.

Rather than simply furlough employees, as is usually done during any lapse of funds, White House press secretary Karoline Leavitt said layoffs were “imminent.” The Office of Management and Budget announced it was putting on hold roughly USD 18 billion of infrastructure funds for New York's subway and Hudson Tunnel projects — in the hometown of the Democratic leaders of the US House and Senate. 

- AP

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 U.S. 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. 

- Reuters

The government shutdown that began Wednesday will deprive policymakers and investors of economic data vital to their decision-making at a time of unusual uncertainty about the direction of the US economy.

The absence will be felt almost immediately, as the government's monthly jobs report scheduled for release Friday will likely be delayed.

A weekly report on the number of Americans seeking unemployment benefits — a proxy for layoffs that is typically published on Thursdays — will also be postponed.

If the shutdown is short-lived, it won't be very disruptive. But if the release of economic data is delayed for several weeks or longer, it could pose challenges, particularly for the Federal Reserve.

- AP

Bernie Sanders and Alexandria Ocasio-Cortez just released a social media video in which they explain why they refused to vote for the temporary funding bill to extend federal funding until late November put forward by Republicans, known as a “clean” continuing resolution, or CR.

In the video, Bernie can be seen asking Cortez, "Why didn’t you vote for this ‘clean’ CR to keep the government open?"

"There's nothing clean about it," replies Cortez, adding, "This is one of the dirtiest tricks that has been pulled on the American people."

She explains that starting October 1, citizens of America will receive a message saying their insurance premiums for next year are going to skyrocket, because the Republican-controlled Congress has not agreed to extend subsidies to help people on lower incomes pay for health insurance.

US Vice President JD Vance made a rare appearance at the White House briefing room Wednesday and blamed the Democrats for the government shutdown.  

“We are going to have to lay some people off if the shutdown continues. We don’t like that. We don’t necessarily want to do it, but we’re going to do what we have to do to keep the American people’s essential services continuing to run,” he said. 

At the same briefing, press secretary Karoline Leavitt confirmed that government agencies are already preparing for cuts.

“Unfortunately, because the Democrats shut down the government, the president has directed his cabinet, and the office of management and budget is working with agencies across the board, to identify where cuts can be made – and we believe that layoffs are imminent,” she said.

The government shutdown, the 15th since 1981, suspended scientific research, financial oversight, environmental cleanup efforts and a wide range of other activities.

Some 750,000 federal workers were ordered not to work, while others, such as troops and Border Patrol agents, began to work without pay. The Department of Veterans Affairs said it would provide burials at national cemeteries, but would not erect headstones or mow the grass.

US President Donald Trump's administration on Wednesday froze $26 billion intended for Democratic-leaning states, following through on its threat to use the shutdown to hit Democratic priorities.

The move cuts $18 billion from transit projects in New York, home to the top two Democrats in Congress, and $8 billion from green-energy programs across 16 Democratic-led states, including California and Illinois.

Vice President JD Vance also warned that the administration may expand its purge of federal employees if the shutdown stretches beyond a few days.

(With inputs from Reuters)

A Republican proposal to fund the government at mostly current levels has failed again in the Senate.

The vote followed a similar pattern to Tuesday night, with most Democrats holding out and demanding that Congress address health care benefits as part of any deal.

A Democratic proposal to reopen the government and extend health care benefits failed in the Senate on a 47–53 party-line vote.

Lawmakers will now consider a Republican measure to keep funding at mostly current levels for seven weeks. The bill also failed Tuesday night, but GOP leaders are hoping to flip a few Democrats this time.

Three members of the Democratic Caucus — Sen. Catherine Cortez Masto of Nevada, Sen. John Fetterman of Pennsylvania, and Sen. Angus King Jr. of Maine — supported the GOP bill in the earlier vote.

House Democratic leaders said Wednesday that President Donald Trump will have to be directly involved in any agreement to end the ongoing government shutdown.

“I don’t think we trust any deal without Donald Trump in the room as part of it,” said Rep. Pete Aguilar, chair of the House Democratic Caucus. “House Republicans have proven that even if they agree to something, they have to go back to him to bless it.”

Aguilar added that Republicans must work with Democrats to fund the government. “We are saying ‘let’s avoid this shutdown, let’s end this and let’s have conversations about what’s necessary to fix the health care crisis that you have created,’” he said.

A Democratic proposal to reopen the government while advancing their health care priorities failed in the Senate on Wednesday, falling well short of the 60 votes needed.

More than 50 Republican senators voted against the measure, dooming it on party lines.

Lawmakers are now preparing to vote on the Republican alternative, which would keep government funding largely at current levels. But with Democrats showing no sign of switching their votes from Tuesday night, when that plan also failed, prospects for a breakthrough remain slim.

Vice President JD Vance on Tuesday warned that ordinary Americans will bear the brunt of the ongoing government shutdown, citing disruptions ranging from food assistance to air travel and military pay.

In a pair of morning TV interviews, Vance said the stoppage will cause hardship for those on low-income food programs, potential delays for air travelers, and force service members to report for duty without receiving paychecks.

“It’s craziness and people are going to suffer because of this,” Vance told Fox News Channel’s Fox & Friends. He echoed the concerns later on CBS Mornings insiting that negotiations with Democrats will happen but only once the government is reopened.

The Trump administration has put a hold on billions of dollars meant for New York City’s major transit projects, citing both the government shutdown and objections over funding principles.

White House budget director Russ Vought announced Tuesday that roughly $18 billion earmarked for the Hudson Tunnel and Second Avenue subway expansion would be frozen. In a post on X, Vought said the administration believed the funding was “based on unconstitutional DEI principles” — referring to diversity, equity and inclusion standards.

An administration official, speaking on condition of anonymity, told the Associated Press that the ongoing shutdown had also left Transportation Department staff furloughed, preventing them from reimbursing workers on the projects. (AP)

Republicans and Democrats were quick to trade blame after the federal government shut down at midnight, deepening the political standoff in Washington.

House Speaker Mike Johnson, in a post on X, accused Democrats of forcing the closure. “Democrats have officially voted to CLOSE the government,” he wrote, warning that the shutdown would cut off WIC nutrition for mothers and children, halt veterans’ health and suicide prevention programs, create FEMA shortfalls during hurricane season, and leave soldiers and TSA agents unpaid. “The only question now: How long will Chuck Schumer let this pain go on — for his own selfish reasons?” Johnson added.

Democratic leaders Hakeem Jeffries and Chuck Schumer responded by placing responsibility squarely on President Donald Trump and Republicans. In a joint statement, they said: “After months of making life harder and more expensive, Donald Trump and Republicans have now shut down the federal government because they do not want to protect the healthcare of the American people.”

The Democratic leaders reiterated their willingness to negotiate, adding: “We need a credible partner.”

Leading Democrats placed the blame for the government shutdown squarely on President Donald Trump and his party, calling it a crisis of Republican governance, CNN reported.

Former Vice President Kamala Harris posted on X: “Let me be clear: Republicans are in charge of the White House, House, and Senate. This is their shutdown.”

Sen. Patty Murray, vice chair of the Senate Appropriations Committee, said in a video message as per CNN, said, “Make no mistake, our government has shut down because Republicans refuse to negotiate with Democrats and do their job.”

Other Democrats echoed the criticism. Sen. Kirsten Gillibrand of New York urged Republicans “to come to the negotiating table and prioritise American families over billionaires.”

Rep. Jasmine Crockett of Texas added: “This is THEIR shutdown,” arguing that Republicans “had every tool to govern and chose chaos instead.”

Among others, the following federal facilities may be affected in the event of a government shutdown:

To end a government shutdown, Congress needs to pass, and the President must sign appropriations bills to fund the departments and agencies that have been shut down.

The President does not have the power to end a shutdown unilaterally.

The funding bills follow the same legislative process as any other bill, requiring approval from both the House and Senate before the President can sign them into law.

A government shutdown occurs when Congress is unable to pass the funding bills, known as appropriations, that keep federal agencies running into the next fiscal year, which begins on October 1.

If no agreement is reached by September 30 11:59, a partial shutdown begins at 12:01 AM ET on October 1.

A few government activities are bound to halt due to employee furloughs and potential layoffs as threatened by US President Donald Trump.

Other functions like NASA space missions, Trump administration’s immigration crackdown via Immigration and Customs Enforcement (ICE) and certain public health works at the FDA and USDA are poised to continue. The federal closure would begin at 12:01 am Wednesday (ET).

Homeland Security, immigration enforcement to continue work:

Most of the employees of the Department of Homeland Security (DHS) will continue to work, since much of the department’s workforce is tied to law enforcement or work in areas that are funded by user fees instead of Congressional appropriations. In a detailed plan, the homeland department had said that about 14,000 of the agency’s roughly 271,000 employees would be furloughed if a government shutdown takes place.

The DHS plan further stated that activities that include providing Security Service protection to President Trump, processing passengers and cargo coming into the country and carrying out the Trump administration’s immigration enforcement would continue.

Medicare and Medicaid payments to continue with delay:

Since there will be a staffing shortage due to the impending government shutdown, the Medicare and Medicaid program services will continue uninterrupted but are bound to face delay in services like the mailing of Medicare cards. According to the Department of Health and Human Services, the federal government has enough money to fund Medicaid until the first quarter of the next financial year.

A deep impasse between Republican President Donald Trump and congressional Democrats has triggered the 15th U.S. government shutdown since 1981. Here's a look at what it will take to reopen the government.

WHAT DO REPUBLICANS WANT?

Trump's Republicans control both the House of Representatives and the Senate, and they have already scored big budget wins this year. The massive legislation called the "One Big Beautiful Bill," passed in July, boosted spending for defense and immigration enforcement, rolled back spending on green energy and other Democratic priorities, while making major cuts in the Medicaid healthcare program for low-income and disabled people to help pay for tax cuts focused mainly on the wealthy.

Republicans also have broadly supported the White House's efforts to claw back money that had already been approved by Congress for foreign aid and public broadcasting, even though that undermines lawmakers' constitutional authority over spending matters.
They have said they would vote for a continuing resolution that would extend funding at current levels through November 21 to allow more time to negotiate a full-year deal.

WHAT DO DEMOCRATS WANT?

As the minority party, Democrats do not have much power. However, Republicans will need at least seven Democratic votes to pass any spending bill out of the Senate, where 60 votes are needed to advance most legislation in the 100-seat chamber.

This time, Democrats are using that leverage to push for renewing expanded healthcare subsidies for people who buy insurance through the Affordable Care Act. Their proposal would make permanent enhanced tax breaks that are otherwise due to expire at the end of the year and make them available to more middle-income households.

If those tax breaks are allowed to expire, health insurance costs will increase dramatically for many of the 24 million Americans who get their coverage through the ACA, according to the nonpartisan Kaiser Family Foundation. The impact would be most acute in Republican-controlled states that have not expanded the Medicaid health plan for the poor.

Democrats also want language inserted into any funding bill that would prohibit Trump from unilaterally ignoring their ACA provisions or temporarily withholding funds. They also want to roll back other restrictions on ACA coverage that were enacted in the "One Big Beautiful Bill."

Those changes would provide health coverage for seven million Americans by 2035, according to the nonpartisan Congressional Budget Office, but also increase government healthcare spending by $662 billion over 10 years. Republicans say they are open to considering a fix for the expiring tax breaks, but say the issue should be handled separately and it was unclear whether their "fix" would differ substantially from the Democrats'.

Republicans have accused Democrats of trying to use the stopgap funding bill to open the gates for government healthcare subsidies for immigrants in the US illegally. Congressional Democrats argue that group of people living in the United States is prohibited by law from receiving such help and that their legislation would not change that.

- Reuters

Former Vice President Kamala Harris, in a post on X, criticised the Republican party and President Donald Trump for refusing to stop the rising costs of healthcare and eventually leading to a government shutdown.

Harris wrote, "Let me be clear: Republicans are in charge of the White House, House, and Senate. This is their shutdown."

The US Postal Service will not get affected by the federal government shutdown and hence the citizens will keep receiving their mails without any interruption. This is because US Postal Service is an independent entity that is funded through the sale of its products and services, AP reported.

The US Congress passed a bill in 2019 that enshrined into law the requirement that furloughed employees be paid retroactively once the operation of the government resumes.

Though the furloughed workers or those who remain in job during the government shutdown will be paid, they will still have to go without one or more of their regular paychecks, depending on the duration of the shutdown, AP reported.

The longest shutdown of the federal government in US has been under President Donald Trump during his first tenure in 2018. The partial shutdown of 35 days in December 2018 affected 340,000 of the 800,000 federal workers at multiple agencies as they were furloughed. The remainder were “excepted” and required to work, AP reported.

The potential financial implications of the US government shutdown can have a negative impact on the US economy as the Congressional budget office estimates that about 750,000 federal employees could be furloughed each day with a total cost of $400 million a day, BBC reported citing a letter issued by the director of the Congressional budget office prior to the shutdown.

"The effects of a government shutdown on business activity are uncertain, and their magnitude would depend on the duration of a shutdown and on decisions made by the Administration," the letter adds.

House Speaker Mike Johnson and other Republican leaders are accusing Democrats for not being able to avert a government shutdown and refusing back the GOP bill that could have funded the government temporarily.

In a post on X, Johnson wrote, "Democrats have officially voted to CLOSE the government."

With US government officially shutting down after a key Senate funding bill failed to pass, the government shutdowns are becoming common in America with President Donald Trump's first term witnessing three such instances.

Here is a list of how long the previous government shutdowns have lasted:

• Nov 1981 - 2 days
• Sep 1982 - 1 day
• Dec 1982 - 3 days
• Nov 1983 - 3 days
• Sep 1984 - 2 days
• Oct 1984 - 1 day
• Oct 1986 - 1 day
• Dec 1987 - 1 day
• Oct 1990 - 3 days
• Nov 1995 - 5 days
• Dec 1995 - 21 days
• Sep 2013 - 16 days
• Jan 2018 - 3 days
• Feb 2018 - 1 day
• Dec 2018 - 35 days

With US government now officially shutdown, the Democratic leaders, including Hakeem Jeffries and Chuck Schumer are accusing President Donald Trump, and Republican party for the deadlock.

In a joint statement, the Democratic leaders said, "After months of making life harder and more expensive, Donald Trump and Republicans have now shut down the federal government because they do not want to protect the healthcare of the American people," CNN reported.

The US federal government has officially shutdown after the Senate failed to pass the funding bill. It is likely to leave hundreds of thousands of employees on unpaid leaves and several government programs and services would be halted.

Since 2018, this will be the first US government shutdown and it is bound to witness non-essential workers to be placed on unpaid leave.

The US Department of Housing and Urban Development has added a message on the top of its website that accuses Democrats and "radical left" for the impending shutdown of the government.

US Homeland Security Secretary Kristi Noem has said that Department of Homeland Security law enforcement officers would continue to work throughout the impending government shutdown.

It is still not clear if the US National Parks will remain open or not since the Department of Interior has not announced any plans related to a government shutdown. Last year when the government shutdown had loomed, the parkservices had said it would close to visitors, BBC reported.

The top US State Department official for management blamed Democrats for the looming government shutdown in an unusually partisan message to staff on Tuesday, according to a copy of the message seen by Reuters.

As the federal government prepares to shut down if a temporary funding deal is not reached, Under Secretary of State for Management Jason Evans wrote that President Donald Trump opposes a shutdown and supports a proposed resolution to fund the government temporarily.

"Unfortunately, Democrats are blocking this Continuing Resolution in the US Senate due to unrelated policy demands. If Congressional Democrats maintain their current posture...federal appropriated funding will lapse."

A lapse would mean some government activities would cease and some State Department employees would be furloughed, he said in the message, which included other information on a shutdown's potential impact on the department.

- Reuters

The US Transportation Department has said that more than 11,000 employees at the Federal Aviation Administration (FAA), about a quarter of its staff, would be furloughed if government funding lapses and the adminsitration goes into a shutdown mode.

US airlines have warned that a partial government shutdown could strain American aviation sector and slow flights, as air traffic controllers and security officers would be forced to work without pay and other functions would be halted, Reuters reported.

The White House has launched a shutdown countdown clock on its website and called it a  "Democrat shutdown". The White House website further says, "Americans don't agree with Democrats' actions".

Both Republicans and Democrats have been blaming each other for a government shutdown that could partially affect the services across the sectors in the United States.

The US government has failed to pass a key funding proposal brought in by the Democrats to fund the government as the administration is now heading for a partial shutdown at midnight on Wednesday. The funding proposal failed to pass the Senate by 55-to-45 vote.

Senate Minority Leader Chuck Schumer, after the Democrats-backed bill failed to pass, said "Democrats remain ready to get to work to negotiate a truly bipartisan agreement to keep the government open."