What happens next as US shutdown enters Day 2? All you need to know

Here is what all happens next?

1. 01

   Shutdown an ‘unprecedented opportunity’

   Trump on Thursday framed the government shutdown as an “unprecedented opportunity” to push his agenda and dismantle federal programs. Writing on social media, Trump said he would meet with budget chief Russell T. Vought to decide which “Democrat agencies” he could target.

   He did not clarify whether he planned to slash spending or lay off federal workers — both threats he has raised since funding lapsed. Trump added that the talks would also determine “whether or not those cuts will be temporary or permanent.”

2. 02

   Administration threatens mass layoffs

   With the US government shutdown dragging on, the Trump administration has warned of imminent mass layoffs of federal workers. Shortly after Trump’s comments, White House press secretary Karoline Leavitt said another round of mass federal layoffs was “likely” if the shutdown drags on. She told reporters that the government could shed workers “by the thousands,” noting the president would refine the plan later Thursday.

   Leavitt had said on Wednesday that job cuts were “imminent,” while Trump’s budget chief privately told House Republicans that agencies out of step with the president’s priorities could see cuts within one to two days.

   The White House has not specified how many workers might be affected. Democrats, however, have downplayed the threat, noting the administration has already been shrinking the federal workforce.

3. 03

   Shutdown could hit US economy

   Treasury Secretary Scott Bessent on Thursday acknowledged that the ongoing government shutdown could weigh on the economy, warning it may deliver a “hit” to the nation’s GDP.

   Speaking on CNBC, Bessent blamed Democrats for the stalemate but conceded the closure risked broader economic fallout. Pressed on potential layoffs, he declined to give specifics but said, “I don’t think it’s unreasonable for the president to use all the levers available to him.”

4. 04

   $26 billion freeze in projects

   On the first day of the shutdown, Trump blocked roughly $26 billion in previously approved funding for infrastructure and green energy projects, with cuts largely targeting Democratic-led states. New York — home to Democratic leaders Hakeem Jeffries and Chuck Schumer — appeared to be singled out.

5. 05

   Democrats hold firm on healthcare

   Democrats showed no signs of softening their stance, continuing to demand Republican concessions on health care — including restoring Obamacare subsidies and reversing cuts to Medicaid and other programs made under President Trump.

   Trump, meanwhile, said on social media that he would meet with budget director Russell T. Vought “to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut.”

   The remarks came a day after Vice President JD Vance said the president remained open to negotiating and was “not targeting federal agencies based on politics.” Vance also dismissed a video Trump shared online mocking Democratic leaders with crude and racially charged imagery.