President Trump leverages shutdown to reshape federal workforce, threaten programs tied to Democrats, and bypass Congress on key budget decisions.
At a Glance
- President Trump is using the ongoing government shutdown to accelerate federal layoffs and cut funding for programs linked to Democratic strongholds.
- Rather than the standard furloughs, the White House has warned that permanent job cuts are imminent.
- Key infrastructure projects in New York — home to top Democratic leaders — are among the first targets of defunded initiatives.
“Layoffs Are Imminent,” Says Trump’s White House
In a sharp deviation from past shutdown protocol, White House Press Secretary Karoline Leavitt confirmed this week that mass federal layoffs are planned, not just temporary furloughs.
“Layoffs are imminent,” Leavitt stated, emphasizing the administration’s hardline stance.
Behind the scenes, Office of Management and Budget (OMB) Director Russ Vought is orchestrating deep cuts, reportedly telling GOP lawmakers in a private call that firings would begin within days.
President Trump praised Vought’s efficiency:
“He can trim the budget in a way you couldn’t otherwise,” Trump said, referring to Vought’s role in the Project 2025 conservative policy agenda.
Targeting Democratic Districts First
The Trump administration has frozen $18 billion in infrastructure funds for key projects in New York, including:
- Subway upgrades
- Hudson River Tunnel construction
These projects are based in the districts of Democratic House and Senate leaders, making the move appear politically motivated.
Shutdown Strategy: Punish and Restructure
This aggressive approach confirms what budget analysts and some lawmakers feared: that the administration would use a shutdown as leverage to bypass Congress and reshape federal operations unilaterally.
“These are all things that the Trump administration has been doing since January 20th,” said House Democratic Leader Hakeem Jeffries. “The cruelty is the point.”
Economic Fallout Could Be Severe
According to the Congressional Budget Office (CBO):
- 750,000 federal workers could be furloughed daily
- Workers would lose $400 million in wages each day
- Past shutdowns reduced GDP, private sector demand, and overall economic output
House Speaker Mike Johnson warned:
“The longer this goes on, the more pain will be inflicted… it is inevitable when the government shuts down.”
Health Care Funding: Key Sticking Point
Democrats are refusing to pass a bill that doesn’t preserve health care subsidies, warning of premium hikes for millions if funding lapses.
- The Kaiser Family Foundation estimates ACA premiums could more than double
- Republicans have left the door open to negotiations — but insist the issue can wait
“We’re willing to have a conversation,” said Vice President JD Vance, “but the subsidies don’t expire until the end of the year.”
Trump Bypasses Congress with Shutdown Leverage
Using what’s referred to as the “One Big Beautiful Bill” (a summer appropriations act), the Trump administration has secured funding for:
- Defense Department
- Homeland Security
That means Trump’s immigration enforcement and mass deportation agenda will continue uninterrupted, even as workers at most other agencies face unpaid labor or layoffs.
Legal Challenges and Budget Clawbacks
OMB Director Vought has attempted to rescind already-approved Congressional funds for programs such as:
- Head Start
- Clean energy
- Foreign aid
- Public broadcasting
The Government Accountability Office (GAO) has issued legal violations notices, but the Supreme Court recently allowed the administration’s “pocket rescission” of nearly $5 billion in foreign aid to stand.
Key Takeaways
- Trump’s White House is using the government shutdown not just as leverage, but as a tool for structural reform
- Layoffs are being prioritized over furloughs, with 750,000+ jobs at risk
- Targeted cuts are being made to Democratic-leaning infrastructure projects
- A funding fight over health care subsidies remains the main sticking point
- Legal boundaries between the executive branch and Congress are being tested — and sometimes overridden
